
(lass H J157, 5 



Works Committees 



AND 



Joint Industrial Councils 



A REPORT 

by 

A. B. WOLFE 




Price, SO Cents 



UNITED STATES SHIPPING BOARD 
EMERGENCY FLEET CORPORATION 
INDUSTRIAL RELATIONS DIVISION 

PHILADELPHIA 

APRIL 
1919 



Works Committees 



AND 



Joint Industrial Councils 



A REPORT 

by 

A B. WOLFE 




UNITED STATES SHIPPING BOARD 
EMERGENCY FLEET CORPORATION 
INDUSTRIAL RELATIONS DIVISION 

PHILADELPHIA 

APRIL 

1919 



BcT 9t *. 

FE3 21 1920 










•W% 



THE first necessity of the industrial situation is greater 
efficiency of production. In order to meet the diffi- 
culties created by the war, to make good the losses 
of capital, and to raise the standard of living amongst the 
mass of our people, we must endeavor to increase both the 
volume and the quality of output. 

In order that this result may be obtained without detri- 
ment to the social welfare of the community, it must be 
sought for rather in improved organization and the elimina- 
tion of waste and friction, than in adding to the strain on 
the workers, and must be accompanied by a change of atti- 
tude and spirit which will give to industry a worthier and 
more clearly recognized place in our national life. 

This can only be accomplished if the sectional treatment 
of industrial questions is replaced by the active co-operation 
of labor, management and capital to raise the general level 
of productive capacity, to maintain a high standard of work- 
manship, and to improve working conditions. 

It is essential to the securing of such co-operation that 
labor, as a party to industry, should have a voice in matters 
directly concerning its special interests, such as rates of pay 
and conditions of employment. It is necessary to create 
adequate machinery, both for securing united action in the 
pursuit of common ends and for the equitable adjustment 
of points which involve competing interests. This machinery 
must be sufficiently powerful to enable both sides to accept 
its decisions with confidence that any agreement arrived at 
will be generally observed. 

From the Memorandum of the Gorton Foundation 



Preface to First Edition 

If the war had continued for several years, its continuance would 
undoubtedly have been attended by serious strain in the relationships 
between employers and employees. Having. in mind such a. possibility, 
a branch of the Industrial Relations Division was organized for the 
purpose of analyzing and making available to American manufacturers 
both English and American experience in industrial relations under 
war-time conditions. 

Many lines of inquiry were started, but only a few of these 
inquiries had been concluded at the time of the signing of the armis- 
tice. Gne of these which' was concluded is now presented as a report 
on Works Committees and Joint Industrial Councils. It has seemed 
best to present the report as prepared by the investigator in charge 
in order that it may be promptly available. In so far as opinions are 
expressed in the report, they are the opinions of the investigator, unless 
otherwise indicated. The United States Shipping Board Emergency 
Fleet Corporation assumes no responsibility beyond that of presenting 
the report. 

L. C. MARSHALL, 

Manager, Industrial Relations Division. 



Preface to Second Edition 

The report on Works Committees and Joint Industrial Councils, 
setting forth the English and American experiences in industrial rela- 
tions under war-time conditions, was published with the hope that it 
would prove beneficial to those interested in American industry. 

The requests for the report have exceeded our expectations many 
times, with the result that the first edition is practically exhausted, in 
spite of the fact that it has been out only three months. 

It is most gratifying to note that the American business man is 
giving serious thought to the more advanced methods of dealing with 
matters of industrial relations and is desirous to learn of the best 
practices. 

We take pleasure, therefore, in publishing the second edition, for 
which it has seemed wise to make a nominal charge, and trust that 
it may continue to play its part in helping to develop a better under- 
standing, more sympathetic co-operation and greater harmony in our 
industrial fabric. 

R. W. LEATHERBEE, 

Manager, Industrial Relations Division. 

United States Shipping Board 

Emergency Fleet Corporation 

philadelphia, pa. 

April I $, IQIQ. 



MR. L. C. MARSHALL, 

Manager of the Industrial Relations Division, 

United States Shipping Board 
Emergency Fleet Corporation, 
philadelphia, pa. 
Sir: — 

I submit herewith a report on Works Committees and Joint Indus- 
trial Councils, the materials for which have been gathered during the 
past four months in the intervals of other duties. Problems involved 
in the organization and functioning of works committees are dealt with 
in some detail. The recommendations of the Whitley Committee and 
the general movement toward joint industrial councils and works corn- 
committees as agencies of so-called ''co-operative management" are 
explained. Some attempt is also made to set forth the theory upon 
which the advocates of co-operative management or industrial repre- 
sentation base their program. Special attention is given to the psycho- 
logical basis and to the relation between industrial democracy and 
management responsibility. 

Many letters of inquiry have been sent to American manufactur- 
ing establishments, but no attempt has been made to secure complete 
information concerning the extent to which works committees or their 
equivalent have been introduced into American plants, nor has any 
intensive study of American industrial representation plans been 
attempted. Enough first-hand information has been obtained from 
American companies, however, to indicate that the trend toward indus- 
trial representation in shop and works committees is under way and 
gaining momentum. 

Cordial acknowledgment is made of assistance rendered in various 
ways by Mr. Montague Ferry, Head of the Information Branch; Mr. 
Arthur Fisher, Mr. Paul Douglas, Mr. F. E. Wolfe, Mr. John J. 
Casey, Miss Mary B. Wesner, Miss Helen Olson, and Miss Caroline 
Shaw. Thanks are also due the various companies and individuals 
who have kindly given permission for the publishing of their experi- 
ence and views with regard to works committees. The Department 
of Labor Library, Washington ; the Free Library of Philadelphia, and 
the Library of the University of Pennsylvania have rendered valuable 
aid in making available important documents and sources. 

Respectfully submitted, 
INDUSTRIAL RELATIONS DIVISION. 
By A. B. Wolfe, 
December 16, 1918. Head, Investigation Branch. 



Contents 

PAGE 

Introduction 11-14 

The Nature of Management 11 

Co-operation Between Industrial Factors 11 

Antagonistic Co-operation 11 

The Part of Labor in Antagonistic Co-operation 12 

Industrial Representation, or "Co-operative Management" 12 

The Agencies of Industrial Representation 13 

The Motives to Industrial Representation 13 

Works Committees 13 

Chapter I. The Human Factor in Industry 15-24 

1. Three Phases of Industrial Evolution : 15 

The Industrial Revolution 15 

Scientific Management 16 

Recognition of the Human Factor 16 

The shortcoming of Scientific Management 16 

Importance of the Psychology of the Worker 17 

Conciliation and Mediation — Their Shortcomings 18 

2. Our Contentment with Industrial Peace 20 

3. The Demands of Labor 21 

The English Labor Party 21 

The Conflict — Attitude of American Labor 22 

Its Causes 22 

Co-operative Management not a Substitute for a Square Deal 

in Wages, etc 23 

The Demand for a Voice in Industrial Government 23 

Chapter II. Psychology, Democracy, and Efficiency 25-34 

1. Psychology in Relation to Industrial Management 25 

Behavior 25 

Instincts 25 

Balked Dispositions 26 

Repression of the Instincts of Workmanship and Self-Exprassion 26 

2. The Psychology of Industrial Unrest 28 

Development of Hostile Community Instincts 28 

Lack of Confidence 29 

Summary 29 

3. The Demand for Industrial Democracy 30 

The Content of Democracy 30 

Application of the Principles of Democracy to the Industrial 

Situation 30 

The Content of Industrial Democracy 31 

4. Democracy and Responsibility 32 

Some political analogies 32 

Administrative Responsibility and Policy-Determining Function 32 
Administrative Responsiblity Must Remain with the Manager 32 
Syndicalist Works Committees, not to Be Confused with Co- 
operative Management under Private Ownership 34 

Chapter III. The Whitley Committee Recommendations 35-63 

1. The Whitley Committee 35 

Instructions to the Committee 35 

Its Membership 35 

Causes Leading to Its Appointment 36 

The Garton Foundation Memorandum 36 

Industrial Council in the Building Trades 36 

Convention of Iron and Steel Manufacturers 38 

7 



Chapter III. — Continued page 

2. Reports of the Whitley Committee 39 

The Interim Report 39 

Recommendations 39 

Works Committees and Joint Standing Industrial Councils 40 

Suggested Questions for Industrial Councils 41 

The Second Report 42 

Classification of Industries on Basis of Degree of 

Organization 42 

Recommendations for Unorganized and Partially Organized 

Industries 43 

Memorandum of the Minister of Reconstruction and the 
Minister of Labor, Rejects the Recommendations of 

the Second Report 43 

The Supplementary Report on Works Committees 44 

Recognition of Organized Labor 44 

Works Committees not to Be Used in Opposition to 

Organized Labor . . 45 

The Report on Conciliation and Arbitration 45 

Compulsory Arbitration Opposed 45 

Industrial Councils to Co-operate with Existing Machinery 

for Conciliation and Arbitration - 46 

The Final Report 46 

3. The Government and the Whitley Recommendations ........ 47 

The Interim Report Submitted to Trade Unions and Employers' 

Associations and to the Committee on Industrial Unrest 47 

October Letter of the Minister of Labor 49 

No Increase of State Control Intended , 49 

Rigidity of Organization not Intended 50 

Councils not to Usurp the Functions of Trade Unions and 

Employers' Associations 50 

Compulsory Arbitration not Desired 50 

Need of a Representative Body for Government Consulta- 
tion with the Industry 50 

4. Progress of the Formation of Industrial Councils 51 

Councils Established, in Process of Formation, and Contem- 
plated 51 

Councils for Public Utility Industries 52 

Demand for Councils in Government Departments 52 

Councils Established by the Admiralty and Post Office Depart- 
ment Criticised 53 

5. Criticisms of the Whitley Plan 53 

Might Mean Compulsory Arbitration 54 

Technical Experts and Office Force not Represented 54 

The National Alliance of Employers and Employed 56 

Its Principles 56 

Its Criticisms of the Whitley Plan 57 

Fear of Governmental Interference ... 57 

The Industrial Reconstruction Council 58 

The Federation of British Industries 59 

Its Purpose 59 

Its Fear of Governmental Interference . 59 

Its Proposals 60 

Trade Councils 60 

Councils of Industry 60 

A National Industrial Council .......-........*... 60 

Its Attitude Towards Works Committees 60 

6. The Government's Purpose . . . . 62 

To Prevent the Rise of Industrial Disputes 62 

To Give the W'orker a Voice in Industrial Government 62 

To Devolve Industrial Government into Industry Itself 62 

To Develop Responsible Representation for Government 

Conferences 62 

To Insure Efficiency and Competitive Industrial Capacity .... 62 



PAGE 

Chapter IV. Works Committees 64-111 

1. Nomenclature 64 

2. The Origin and Development of Works Committees 64 

Organized Labor 64 

The Shop Steward 66 

Shop Meetings • 66 

Piece-rate Committees 67 

Pit Committees 67 

Importance of Co-operation on Employer's Part 68 

The Stimulus of War Conditions 69 

Dilution Committees 69 

Non-union Collective Bargaining 70 

3. Functions 70 

Demarcation of Function Between Works Committees and 

District Councils 70 

Functions Always Consultative 71 

Functions Vary with Type of Committee 72 

Wages . 73 

Piece-rates 73 

Examples of Piece-rate Committees 73 

Overtime 75 

Joint Committee on Overtime 75 

Grievances . 76 

Procedure in Hearing Grievances 77 

Changes in Process, etc 77 

War Conditions, Demobilization, etc 77 

Absenteeism 78 

Committees on 78 

Labor Turnover 81 

Technical Training 81 

Business Education 82 

Suggestions 83 

Suggestion Committees 84 

Production Committees 86 

Appointment and Promotion 89 

Welfare Committees 90 

4. Organization and Procedure 90 

A. Problems of Organization 90 

Constitutional Questions 90 

No General Answer Possible 91 

(1) Types of Committees .91 

Welfare Committees 91 

Industrial Committees 92 

Joint vs. Separate Committees 92 

Advantages and Disadvantages of Joint Committees 93 

Representatives of Firm Should Be of High Rank 93 

The Open Door 94 

(2) Relation to Organized Labor in the Plant 94 

Composition of Committees , 94 

Safeguarding the Interests of both Union and Non-Union 

Men 95 

Tendency Toward Election of Union Men 96 

(3) Arrangement of Constituencies 97 

Elections in Closed Shop 98 

(4) Skilled and Unskilled 98 

Foreign-born Laborers 98 

Negro Laborers , 100 

(5) Representation of Women 100 

(6) Tenure of Office of Committee Members 102 

9 



Chapter IV. — Continued page 

(7) Other Constitutional Questions 102 

Secret Ballot 102 

Minority Representation 102 

Recall 103 

Officers ■ 103 

Secretary 103 

Pay of Secretary 104 

Size of Committee 104 

B. Procedure 104 

(1) Time and Frequency of Meetings 104 

(2) Amount of Time the Management Should Spend in Meetings 105 

(3) Place of Meeting 106 

(4) Procedure in Meetings 106 

(5) Agenda 107 

(6) Minutes 107 

(7) Referendum 107 

(8) Relation of Works Committee to Foremen 107 

Foremen's Committees 109 

General Principles which Should Govern Procedure 110 

Chapter V. Works Committees in the United States 112-138 

Interest in Co-operative Management 112 

American Federation of Labor 112 

Executive Committee of Socialist Party , 113 

Chamber of Commerce of the United States, Committee on 

Industrial Relations 113 

Pronouncements from Government Agencies 115 

Department of Labor, Information and Education Service 

War Industries Committee 115 

War Labor Policies Board 115 

Shipbuilding Labor Adjustment Board 116 

Provisions for Shop Committees in the Earlier Decisions 116 

Provisions in Later Decisions 117 

National War Labor Board 122 

Other Boards and Decisions 122 

The Loyal Legion of Loggers and Lumbermen 125 

Works Committees in American Firms 128 

Size of Plant in Relation to Committees 129 

Relation of Works Committees to Trade Unions at Large .... 130 

Problems of Works Committees in Non-union Plants 131 

Conflict of Opinion as to Success of Non-union Industrial 

Representation Schemes 131 

Desirability of Building on a Union Basis where Possible 134 
The Business Agent — Effect of Works Committees on His 

Position and Functions 135 

The Results of Works Committees 136 

Chapter VI. Conclusion 139-146 

Appendix I. — Model Constitution of a Joint Industrial Council, 

Drafted by the British Ministry of Labor 147-149 

Appendix II. — Rebuilding Trade — An Olive Branch to Labor 150-151 

Appendix III. — Agreement Between the Engineering Employers' 

Federation and Trade Unions in Great Britain 152-153 

Appendix IV. — A Non-union Collective Bargaining Plan 154-157 

Appendix V. — Works Committees and other Industrial Representation 
Plans in Operation in American Establishments, to- 
gether with Opinions on Works Committees 158-237 

Appendix VI. — Lost Time in Munition Factories, a New Way of 

Dealing with Offenders 238-241 

Appendix VII. — Provisions for Works Committees in the Awards of 

the National War Labor Board 242-247 

Bibliography 248-254 

10 



Introduction 



The nature of management — Industrial management involves (1) 
organization, (2) financing, (3) marketing, all to the end of creating a 
product or service and selling it for a price. Financing includes the 
procurement of business' capital (money or credit) for construction 
of plant and meeting expenses for material, power, and labor which 
cannot be met out of current income. Marketing includes the buying 
of material, labor, etc. to the best advantage, and the selling of product 
or service to the greatest profit. Organization comprises the structure 
and operation of the labor, the land, the plant, machinery, and materials 
which constitute a going concern. In a general sense, organization also 
includes, it is true, both financing and marketing, since a machinery 
and method for these processes have to be set up and kept in effective 
running order. But it is convenient to take the term organization in 
the narrower sense. In this sense it marks what may be called, broadly, 
the engineering aspect of management. The manager has to fit together 
material things and human forces into a productive organism, be it 
mine, farm, factory, or shipyard. 

Co-operation between the different factors of industry — Co-opera- 
tion characterizes all industry. It is a truism to say that the captain 
of industry would be helpless and useless in the absence of labor — a 
fact which laborers recognize and utilize on occasion by refusing to 
co-operate, that is by striking. The laborer is helpless also without 
the manager — some manager — and he recognizes this by submitting 
usually in good spirit, sometimes sullenly, to direction and orders. 

Antagonistic co-operation — But the co-operation which charac- 
terizes industry is not infrequently antagonistic co-operation, marked 
on the manager's side by distrust of labor, class consciousness, autoc- 
racy, and cold calculation; and on the laborer's by constraint, with- 
holding of effort, ill-will, unrest, and hostility. Being in the nature 
of an engineering function — fitting things together — management, 
especially in our modern impersonal industrial organization, has had a 
tendency to neglect the human element, which neglect is about as 
disastrous as it would be for an engineer to forget to oil the bearings 
of his machine. With the oil of the co-operative spirit lacking or too 
thin, the industrial machine produces grinding, rasping, and heat, and 
has to stop for repairs — the patched-up work of mediation or 
arbitration. 

11 



The part labor plays in antagonistic management — In recognition 
of the human element in industry, the phrase human engineering has 
been coined, and in the hope of oiling the bearings and eliminating 
stoppages the idea of co-operative management is evolving. Labor has 
long demanded a collective voice in the making of the wage contract 
and the determination of work conditions. Employers on the other 
hand have generally stood out against these demands as far as they 
could. The result is an industrial plant arranged into two hostile and 
suspicious camps. The effect is essentially that of a divided manage- 
ment warring against itself. While the workers, denied a recognized 
and constitutional voice in plant organization and conduct of industry, 
do not seem, on the face of things, to have any part in management, 
they really do, under present conditions, play an important part in it. 
indirectly and under the surface. The man who thinks he is "manag- 
ing his own business without the interference of labor" and who thinks 
he is getting efficiency out of his plant even if his employees are rest- 
less and discontented, is probably laboring under an illusion ; his work- 
men may be taking every opportunity to "get even" and "put one over 
on him," by all the semi-unconscious and intangible tricks and prac- 
tices to which any aggrieved class or person will become habitually 
addicted; his foremen will not know the joy of wholehearted, cheerful 
work on the part of their men; his superintendents will find things 
going at cross purposes in a variety of ways hard to explain and harder 
to remedy. The "labor agitator" of the bad type will have a fruitful 
field of operation, and in general, compulsion and sullenness will pre- 
vail where confident cheerfulness and steady industry should be the 
normal day-in and year-out condition. 

Industrial representation — Industrial representation, or co-opera- 
tive management, as some prefer to call it. means the elimination of 
antagonistic management. It means the recognition that the workers 
not only have a stake in industry and should have something to say 
about it. but that the denial of a consultative voice to them is respon- 
sible for much, if not for most, of our industrial unrest and inefficiency. 
Industrial representation means at once specialization and co-operation. 
It means that matters which concern employees only shall be discussed 
and decided by employees only, meeting in constitutional assemblies — 
shop and works committees; matters that concern the employers only 
they shall decide ; but matters that concern both shall be discussed in 
joint conference (joint works committee, joint industrial council) and 
decided upon the basis of open diplomacy. Generally speaking, work- 
men will have no interest in the financing and marketing ends of 
management, except in those cases where the financing of the companv 
and its selling, buying, and price policies have important bearing on 

12 



wage issues. 1 Co-operative management, therefore, does not contem- 
plate that the workers shall have a voice in financing and marketing. It 
may mean in certain instances, however, that the company must stand 
ready freely and frankly to throw its books open to inspection by 
properly authorized representatives of its own employees. 2 

The agencies of industrial representation — -The agencies of 
co-operative management are (1) within the plant, shop committees 
and a works committee, 3 (2) in the industry as a whole, district and 
national joint industrial councils, 4 and special collective bargaining 
conventions or conferences between employers' associations and trade 
unions. 

The motives to industrial representation — The movement for 
co-operative management is today one of the livest movements in 
England and it bids fair to become a lively issue in America, and this 
on four grounds: (1) Industrial unrest is everywhere threatening— 
where it has not actually already overturned the established basis of 
industrial control. (2) Even if unrest does not go to syndicalist or 
Bolshevistic extremes, it seriously impairs industrial efficiency and 
makes the task of management infinitely harder than it should be. 
(3) There is a general feeling that industrial efficiency must be 
increased (a) in order to rebuild the war-devastated wealth of the 
world, (b) to meet the intense international economic competition the 
coming of which, while dreaded, seems to be taken as a matter of 
course. (4) Everywhere a new ethical spirit is developing, recognizing 
the worker as a human being and his right to a voice in industrial 
as well as in political government. 

Co-operative management, in short, is an aspect of industrial 
democracy, and aims at a compatible combination of democracy and 
efficiency in the organization of industry. 

Works committees — With regard specifically to works committees, 
the thought underlying the proposal of the advocates of industrial 
representation for their institution in American industrial establish- 
ment's, following their actual existence in many English factories and 
the official encouragement which the English government is directing to 
their further extension, is that American employers, especially in large 
establishments, should permit and encourage their employees to elect 
representative committees whose function it will be to consider not 

1 As in the case of the railroad companies vs. the railroad brotherhoods. On November jl, 
1918, the photo-engravers of New York City announced a new price list to their customers. 
This list was made up by the Photo-Engravers Union and accepted by the employers. This 
is an exceptional and highly interesting case where co-operative management touches financing 
and price-fixing. The photo-engravers have, with union co-operation, fixed a scale of selling 
prices that will permit the payment of a living wage. — See the Survev, Nov. 16, 1°1S. pp. 
192, 193. 

2 This is the understood policy of one well-known American firm which two years ago 
instituted the works committee system in its plant. 

8 See Chapter IV. 
* See Chapter III. 

13 



•-"■ grievances but problems of works organization, production 
methods, shop rules and regulations, and in short all matters which 
afreet the welfare and spirit of the workers and the tone of the rela- 
tions between them and their employers. It is a further thought that 
the work of these committees, while so far as possible organized and 
conducted by the w : rkers themselves, should have not only the friendly 
interest and backing of the employers but their cordial co-operation 

ell. 

The motive for this proposal is the conviction, in the mines : 
thoughtful employers and students of the industrial problem, both in 
America and abroad, that industrial unrest can be allayed only by 
measures which will appeal, to rational and not too selfish employers 
and workmen, as embodying the principles of a square deal. Those 
who sponsor the committee plan are ready to grant freely that, like 
other expressions and methods of democracy, it may not produce : 
appearance of speed and accuracy in decision and organization which 
characterize, superficially at least, more autocratic methods of indi - 
trial control; but the}' believe that in the long run industrial efficiency 
must be based upon a square deal, and that what is a square deal can 
be defined even to the approximate satisfaction of all concerned only 
:o-operative discussion and deliberation. Back of the movement 
: : ro-operative management lies the belief that there is a vast fund of 

I will, and of productive energy, which has hitherto largely been 
allowed to g: fcc }-5;e — or even turn sour, to produce industrial unrest 
and ferment — because the old-time individualistic methods and auto- 
:::.::: ideals of industrial management have failed to take account of 
the psychology of the worker as a real human being. The motive to 
co-operative management, in other --iris, is fcc aid in securing indus- 
trial efficiency as well as industrial justice through a rational organiza- 
tion of industry which shall treat men as men and not as machines 
It is backed up by the belief that a square deal and maximum efficiency 
are mutually cause and effect, and inseparable. 



14 



Chapter I. The Human Factor in Industry 



1. Three Phases of Industrial Evolution 

The phases of industrial evolution — Since the beginning of the 
industrial revolution, in the eighteenth century, three phases of indus- 
trial development are to be distinguished. The first was constituted by 
the industrial revolution itself ; the second by the activity of efficiency 
experts and their attempt to perfect industrial organization through 
so-called scientific management; and the third, just now developing, 
by recognition and understanding of the great part which the 
psychology of the workman plays in industrial peace and efficiency. 

The first phase, the industrial revolution — The nineteenth century, 
"the wonderful century," as Alfred Russell Wallace called it, was 
devoted to the study of the laws of material nature and to the 
development of physical equipment. No preceding period in the his- 
tory of the human race began to equal it in scientific discovery and 
invention, and it is doubtful if any succeeding period will surpass it in 
this regard. For the first time in the world's history the human mind 
was really free to devote its rational capacity to the discovery of 
nature's methods of action. As this great scientific achievement grad- 
ually unfolded it was more and more utilized by practical men in the 
re-organization and advancement of economic production, a process 
of change which may be said to constitute the first phase of modern 
industrial evolution. Steam, electricity, the development of chemistry, 
and many other applications of scientific advancement, all contributed 
to the transformation of the industrial process, a transformation 
brought about on the one hand by the energy and effort of captains 
and sub-captains of industry, whose whole life-interest was wrapped 
up in securing that greater efficiency of the physical organization of 
their plants, which together with low wages, they conceived to be the 
chief factor in productive efficiency, and hence in profits ; and on the 
other hand by those men of perhaps less driving energy, but more 
constructive imagination, whose satisfaction it was to provide the prac- 
tical inventions without which the physical re-organization of industry 
would have been impossible. 1 This great task of organizing the purely 
physical productive forces — the material nature factor — involved, at 
the beginning of the century, the change from hand to machine proc- 
esses and from the domestic to the factory system ; at the end of the 
century it had brought us to the more exact tasks of effective planning 

1 See Taussig, Inventors and Money Makers. 

15 



of plant and shop, economical routing of material, more minute sub- 
division of labor and specialization of calling, and to the larger task of 
co-ordinating our extractive, manufacturing, and transportation sys- 
tems. All this involved radical changes in the position of labor. Labor 
became more than ever a cog in a mighty and intricate machine, and 
like other parts of the machine, had perforce to be in the right place 
at the right time, very much regardless of the desires or feeling of the 
laborer, either as an individual or as a class. 

The second phase, scientific management — The second phase in 
the evolution of industrial management developed at about the begin- 
ning of the present century when the efficiency expert, or industrial 
engineer, as he now prefers to be called, put in his appearance. 
So-called scientific management had its birth in Taylor motion-study 
schemes and "scientific" wage bonuses, and production managers were 
led to study the labor factor in their establishments. But they were 
left, from the whole point of view of scientific management authorities, 
to regard labor practically in the same light as that in which they 
regarded their machinery and raw material, namely, as something to 
be shaped, manipulated, adjusted, put in its proper place, and left to 
perform its allotted task with automatic regularity and monotony. 

The third phase, recognition of the human factor — A third phase, 
now, we may hope, being entered upon, will be characterized by the 
development of a type of industrial management which will be keenly 
and truly cognizant of the part which human nature plays in industrial 
organization and which will clearly understand that the needs, real or 
fancied, of the workingman — his instincts, prejudices, emulations, 
ambitions — are as important in the weaving of the industrial fabric 
as is the quality of steel which goes into a cutting tool, the effective 
routing of material, or the most scientifically devised cost-keeping 
system. In other words, this third phase will be one in which full 
recognition is given to the human factor, and in which, if labor makes 
impossible or unreasonable demands, the employer will seek to under- 
stand the cause of those demands rather than flatly refuse to consider 
them or offer a take-it-or-leave-it compromise. 

The shortcoming of scientific management — The great short- 
coming of the scientific management expert, as well as of the average 
industrial engineer or production manager, was, and is, his sometimes 
sublime unconsciousness of the importance of the second great factor, 
the mental attitude of the worker, or rather, perhaps, his failure to 
see the worker's attitude as it really is. The efficiency experts have 
been too much in the habit of regarding the workingman as a purely 
mechanical means to physical ends. That this conception has been 
detrimental to the very objects which the experts wish to accomplish is 

16 



shown by the almost universal hostile attitude of labor, whether organ- 
ized or unorganized, toward scientific management, even in its milder 
forms. Scientific management is only pseudo- or semi-scientific in 
that it fails really to "manage" the human nature involved in 
production. 1 

Importance of the psychology of the worker — However much of 
a "rough-neck" the workingman may be, however crude his intellectual 
processes, his mental machinery is nevertheless infinitely more complex 
and delicate than that of the finest chronometer. We reserve the 
adjustment of chronometers to men who understand delicate machin- 
ery, but too often the adjustment of this complex human factor to the 
industrial process is left either to the blind power of conflicting and 
passionate forces or to the tender mercies of experts who have slight 
perception or knowledge of the real psychological elements with which 
they have to deal. The average business man or captain of industry 
prides himself upon being a good judge of human nature. He usually 
is so, in all those matters which have to do with the financing and 
marketing phases of his enterprise, which involve his own reputation 
among other business men and the reputation of his goods among con- 
sumers. In the task of surrounding himself with an able and loyal 
personnel in management and office force, he has to be a keen, quick 
judge of temperament and capacity. In securing and holding the good 
will of the purchasing public he has to approach human nature from 
another side — its wants, its emulations, its vanities, its demand for low 
prices, its reactions under the varied types of suggestion embodied in 
advertising. But in his relations to labor, especially in the larger 
plants where direct contact between the higher management and the 
rank and file of workers is a physical impossibility, the American 
business man often fails, from lack either of ability or of time, to 
inform himself with regard to the real psychology of the worker. 
The ever-recurring conflicts between labor and capital, with all the 
incalculable loss they incur for both, not only in money, but in the 
perpetuation of ill will and hard feeling, are sufficient evidence that 
the managers of industry have been unable or unwilling to secure a 
smooth running co-ordination between the mechanical factor and the 
human factor in production. Their failure to do this is proof that 
they do not understand the mental make-up of labor, and consequentlv 
do not. manage effectively its co-ordination with plant machinery and 
raw material. In their concentration of attention upon the technicali- 
ties of physical organization of plant and the psychology of the 

1 See John R. Commons, Labor and Administration, 1913: R. F. Hoxie, Scientific 
Management and Labor, 1915. "In spite of the development of Big Business, human nature 
has remained the same, with all its cravings and all its tendencies toward sympathy when 
it has knowledge and toward prejudice when it does not understand. The tact is that the 
growth of the organization of industry has proceeded faster than the adjustment of the 
in'errelations of men engaged in industry." — John D. Rockefeller, Tr.. in the At 
Monthly, Jan., 1916. 

17 



consumer, the captains of industry have tried to ignore the most diffi- 
cult, if not the most important, problem of productive management — 
namely, the task not only of avoiding conflicts between labor and 
management, but of drawing upon that vast potential fund of co-opera- 
tive good will and positive helpfulness in plant administration which 
undoubtedly exists, and which only aw r aits, for its realization and 
application, the development of some plan of organization which will 
bring plant management and representatives of labor into frequent 
conference, with all their cards face up on the table. 

It is not too much to say that practically a century and a half of 
conflict between employers and employees has been due fundamentally 
quite as much to this lack of perception on the part of employers as to 
the "greed of capital," the headlong pugnacity of labor, or the cor- 
ruption, here and there, of a labor official — all of which have doubtless 
been in part the result as well as the cause of the absence of a real 
psychological rapprochement between labor and capital. 

Conciliation and mediation — The growth of large-scale schemes 
for conciliation and mediation, whether under government encourage- 
ment and control or otherwise, might be cited as evidence of a tendency 
for labor and capital to try to "get together.'' So also with collective 
bargaining in most of its aspects. It affords, spasmodically, an oppor- 
tunity, often forced, for contact between representatives of the two 
sides, but too frequently this contact is under relations so strained as 
to preclude any attempt to develop an atmosphere of friendly co-opera- 
tion in the interests of the concern or the industry as a whole. 

Conciliation, mediation, and arbitration have achieved notable 
results in bringing labor and capital into conference on special occa- 
sions and for specific purposes, but they have fallen short of securing 
that universal, continuous, and frank, man-to-man understanding and 
confidence without which industrial relations can never be expected to 
reach a stable equilibrium on a high plane of productivity and 
efficiency. It is worth noting that most conciliation and mediation 
schemes hitherto in operation or proposed do not afford contact between 
the worker (or his immediate representative) and the managers; and 
the more ambitious the scheme the less is the probability of such con- 
tact, in the absence of definite machinery to secure it. 1 

However valuable conferences between representatives of employ- 
ers and the higher officials of organized labor may be, they do not 
supply a basis for that intimate contact, discussion, and co-operation 

1 See Rarnett and McCabe, Mediation, Investigation, and Arbitration in Industrial 
Disputes, 1916, Ch. 5 (the same matter may be found in the Final Report of the United 
States Commission on Industrial Relations, 1915, pp. 194-201); and Suffern, Conciliation 
and Arbitration in the Coal Industry of America, 1915. For description of a conciliation and 
collective bargaining system which comes close to the joint industrial council plan, see 
United States Bureau of Labor Statistics, Monthly Review, May, 1918, pp. 166-179, "Trade 
Agreements in the Stove Industry," by Boris Emmet. 

18 



which are expected to result from a properly devised system of works 
committees and joint industrial councils. 1 

Conciliation and mediation are too often remedies for industrial 
fever, and arbitration is a last desperate measure which not infre- 
quently lays the basis for future organic disturbance without really 
removing the old difficulty. Arbitration and conciliation, under the 
conditions in which they are usually resorted to, are good so far as they 
go, but they do not go far enough, nor in precisely the right direction. 
In a sense they are negative. If they maintain or increase productive 
power, it is only because on the whole they tend to lengthen the periods 
of industrial truce in comparison with those of open warfare. 

The inadequacy of collective bargaining of the older type is 
especially well brought out in the Memorandum of the Garton Founda- 
tion, on the Industrial Situation after War : 2 

The explanation of the comparative failure of the employers' 
associations and trade unions on the constructive side of the indus- 
trial problem is to be found in their strictly sectional and defensive 
origin and outlook. Regarding themselves as entrusted with the 
interests of one party to industry and not of industry itself, they 
have paid no attention to the problems and difficulties of the other 
side, and they have come together only when one had a demand 
to make of the other or when a conflict was imminent. Thus they 
have always met in an atmosphere of antagonism, and their nego- 
tiations have been carried on as between two hostile bodies. 
Exchange of views has come at too late a stage in the proceedings, 
when a stand has already been taken on both sides and prestige or 
prejudice forms an obstacle to concessions. What is still more 
important, their discussions have been confined to specific points 
of dispute and have not embraced the consideration of constructive 
measures for the improvement of industrial conditions and the 
increase of efficiency. Yet the possibilities of combined action 
which lie in these two great groups of highly organized and power- 
ful bodies might transform the whole face of industrial life. Their 
united knowledge of both sides of the industrial process should 
enable them to throw light on every phase of its successive 
developments. Their united strength would render them, in com- 
bination, practically irresistible. But to secure the realization of 
these possibilities the co-operation between the two groups must be 
continuous and constructive, and must be based upon a recognition 

1 The number of labor men who actually play a part in the proceedings of a district 
meeting of employers and union delegates for establishment of contract standards of wages, 
hours, and conditions of work, is greater, however, than appears on the surface, because "the 
local unions send a large number of unofficial delegates who hang about the hotels and 
advise with the official representatives, but do not appear on the floor at the official meetings 
of the joint conference. 

2 London, October. 1916. Reprinted by the United States Shipping Board Emergency 
Fleet Corporation, Philadelphia, 1918. 

19 



of the common interests of employers and employed, both as 
parties to industry and members of the community. Employers 
must realize that both their own interests and the obligations of 
citizenship impose upon them the necessity of a sympathetic under- 
standing of the lives and standpoint of those with whom they work 
and a willingness to co-operate, without dictation or patronage, in 
every endeavor to improve their material or social conditions. 
Labor must realize its direct interest in the improvement of indus- 
trial processes, the organization of industry, the standard and 
quantity of production, and the elimination of waste in material or 
effort. Both the employers' associations and trade unions must 
learn to regard themselves as joint trustees of one of the most 
important elements of the national life. 

2. Our Contentment with Industrial Peace. 

Our strivings for mere peace in industry throw a flood of light 
upon our standards of industrial efficiency and our ideals of the rela- 
tion that should exist between employer and employees. Our standards 
are not exacting. We may compare our satisfaction with industrial 
peace, when we fancy ourselves momentarily in possession of its bless- 
ings, to our complacent gratification when we appear to secure some- 
thing resembling honesty in state and municipal government. It is, of 
course, needless to remark that in a society able to conceive and to hold 
high standards of efficiency we should be content neither with indus- 
trial peace nor with civic honesty. To be sure, if we could but com- 
pass these minimum and in a sense negative virtues, we should find 
ourselves surprised by an unaccountable increase in industrial and gov-^ 
ernmental economy; but if our standards were high and exacting, we 
should demand carefully thought-out steps to secure, positively, 
efficiency in the largest sense — a smooth-running government and 
industry in which all the parts work harmoniously to the accomplish- 
ment of the largest purposes with the minimum necessary expenditure 
of energy. 

Efficiency — a good word now unfortunately much overworked and 
maltreated— has been regarded, until recently, as something which only 
idealists, in the realm of government, would concern themselves with; 
in business, as a matter falling entirely within the sphere of the pro- 
duction manager and the efficiency experts. Most of these function- 
aries have, however, given too little regard to the powerful subtleties of 
the human factor with which they were unwittingly dealing; they 
simply have failed to sense the significance of what is now the strategic 
factor in industrial efficiency — the human nature of the workman. 1 

1 "Nothing is more surprising, often, to employers and- the merely scientific man, than 
the unanimity with which thousands of unorganized laborers will suddenly turn out on 
strike at the call of a few hundred organized laborers. It is their desperate recognition 

20 



3. The Demands of Labor 

Some of the issues which produce discord, if not actual violence, 
between labor and capital- go so deep that no mere device of industrial 
governmental machinery, however much contact it afford between 
employer and employee, can be expected to settle them. If the 
employer continues to hold that he should purchase his labor, whether 
under individual or collective bargaining, at the ''market price," and 
that, the business being his, he is entitled to all its profits — while or 
the other hand the workmen, becoming socialistically inclined, hold 
that a business run by an employer for pecuniary profits under a com- 
petitive price system can never be run really for the public good — and 
if, further, they hold that they are entitled to share heavily in the 
profits which they help to produce, then there is no such thing as "peace 
without victory." One side or the other will have to demonstrate 
that its demands are just and conducive to the general welfare. 

The demands of the English Labor Party — The point to this seem- 
ing digression lies in the fact that labor is making these demands — and 
more. We must recognize the significance of the fact that the laboring 
class comprises the vast majority of the population, and that it only 
awaits organization into a consolidated labor party to find itself in pos- 
session of supreme political power. English labor is much nearer such 
organization than is American. If the English workman is even partly 
successful in his demands, American labor will have a powerful motive 
to organize for similar ends. 1 The essential consideration is that the 
extent to which labor will insist upon the realization of a socialistic 
program, such as is proposed by the British Labor Party, and the 

that the day of individual bargains is gone for them. And it would seem that a corporation, 
representing thousands of stockholders speaking through one man, might be able to anticipate 
unionism by finding some means of scientific organization of labor, before installing scientific 
management. In lieu of this, they wait until a union is formed," and then complain that 
it is hostile to efficiency. The example of the stove moulders, which I have given, shows 
that their hostility to efficiency is the hostiliiy to methods that take them at a disadvantage 
in their power of protecting themselves. When once they are guaranteed assurance, as in 
the foundry business, that this will not be done, they respond as reasonably as other 
people." — John R. Commons, .Labor and Administration, 1913, p. 147. 

1 "The Labor Party is the party of the producers whose labor of hand and brain pro- 
vide the necessities of life for all, and dignify and elevate human existence. That the 
producers have been robbed of the major, part of the fruits of their industry under the 
individualist system of capitalist production is a justification for the party's claims. One of 
the main aims of the party is to secure for every producer his (or her) full share of those 
fruits— and to ensure the most equitable distribution of the nation's wealth that may be 
possible, on the basis of the common ownership of land and capital and the democratic 
control of all the activities of society 

"We believe that the path to the democratic control of industry lies in the common 
ownership of the means of production: and we shall strenuously resist every proposal to 
hand back to private capitalists the great industries and services that have come under 
Government control during the war." — Arthur Henderson, The Aims of Labor. 2d Edition. 
New York, 1918, pp. ,26, 28. See also pp. 118-123. The Social Reconstruction Program 
of the British Labor party is published in full in the Monthly Review, United States Bureau 
of Labor Statistics, April, 1918, pp. 63-83. 

See also the Reconstruction Resolutions of the California State Federation of Labor. 
\yhich contain the following section: "Industry should not be controlled by a jostling crowd 
of separate and priavte employers with their minds bent,. not on the service of the community, 
but by the very law of their being, only on the utmost profiteering. We should look to. 
scientific reorganization of the nation's industry, not deflected by individual profiteering, on 
the basis of a common ownership of the means of production.'' Tin- Survey, Nov. 23, 
1918, p. 225. 

21 



degree of social discord and dislocation occasioned by its realization, in 
part or in full, will depend largely upon the attitude of employers 
toward labor and especially upon the extent to which understanding 
and mutual good will can be substituted for the hitherto prevalent 
conflict-attitude. 1 

The conflict-attitude — The attitude of hostility, which, in the by 
and large, characterizes the relations between labor and capital every- 
where, but especially in the United States, needs explanation. The 
frequent absence of confidence and good will between employer and 
employee is the most costly shortcoming of our whole economic organ- 
ization. It is hard to escape the impression that each side is frequently 
bent less on producing goods for the consuming public than on "getting 
even" with the other side. 

Its causes — No doubt the vicious lump-of-labor theory, according 
to which the workman reasons that there is only so much work to go 
around, and if he does too much today he may have nothing to do 
tomorrow, is responsible for many of the policies and practices of 
organized labor, some of which policies a really peaceful and efficient 
industrial society would find it hard to tolerate. Temperamentally lazy 
men will doubtless always try to "soldier" on the job, but an organized 
and apparently well-nigh universal "ca canny" system must have other 
causes back of it than laziness or determination to "get even" with 
the employer. Similarity, we must search further back than the rea- 
sons which are usually given for trade union restrictions on member- 
ship, rules providing for unduly long apprenticeship, opposition to 
piecework, etc. All of these doubtless have their immediate motive in 
the desire of labor to hold its own collectively against the massed bar- 
gaining power of capital. 

The fundamental cause of the conflict-attitude lies in the fact that 
the employer, on his side, and the laborer on his, are both seeking to 
appropriate as much as they can of the same thing, the product of 
industry — so eager that in their effort to get their share they are will- 
ing to see the total greatly reduced. It is this pig-trough practice which 
gives the keenest critics of our "pecuniary culture" their cue for the 

1 Labor's conception of this conflict-attitude and its causes is reflected in the Supple- 
mentary Report by John B. Lennon and James O'Connell, in the Final Report of the United 
States Industrial Relations Commission, 1915, pp. 286, 267 — "We hold that . . . the organi- 
zation of the trade unions and of the employers' organizations should be promoted, not, how- 
ever, for the sole purpose of fighting each other, but for the commendable purpose of collective 
bargaining and the establishing of industrial good will. Organizations of employers that 
have no object in view except to prevent labor having a voice in fixing the conditions 
of industry under which it is employed, have no excuse for existence, as they are a bar to 
social tranquility and a detriment to the economic progress of our country. The evidence 
before the Commission shows that organized labor has no desire, nor has it attempted, to 
control the business of the employer. It insists that it has a right to a voice, and a potent 
voice, in determining the conditions under which it shall work. This attitude, we are sure, 
will be continued in spite of the oppositon of any so-called employers' organizations." Whether 
or not Messrs. Lennon and O'Connell have a just and correct view of the situation is not 
the question; the point is that their statement doubtless reflects the feelings and demands 
of a great mass of working men. 

22 



charge that modern industry is run not for the public good, but for 
money profiteering. 1 The development of unquestionable industrial 
efficiency presupposes the substitution of the "work-bench" for the 
"pig-trough" philosophy, 2 and this cannot be done so long as a square 
deal in wages and work remains to be made. 

Co-operative management not a substitute for a square deal, but an 
avenue to it — Whatever machinery of industrial democracy or co-opera- 
tive management in the form of works committees and industrial coun- 
cils for collective bargaining and the governing of the general relations 
between employers and employees may be proposed or in the fullness 
of time established, it should be clear from the outset that such machin- 
ery cannot be offered as, in itself, a substitute for a square deal, but 
only as one avenue leading toward it, and toward real industrial 
efficiency. Nobody will expect the laborer to be satisfied with a piece 
of governmental machinery, however large a place he may have in its 
workings, so long as he feels that he is not getting a just share in the 
product of industry. 

On the other hand, even should the most extreme demands of labor 
be satisfied so far as wages, etc. are concerned, the workers would still 
be dissatisfied and restless if an autocratic control of industry remained 
in practice. The time is probably past, whether we like it or not, when 
an employer can say, "My business is my own to run as I please !" He 
may "get by" with this old-time individualistic attitude for a time, but 
his industrial life will be marked by a succession of costly contests with 
labor and with a public opinion which has undergone remarkable 
change on these matters in the past few years ; and he will in the long 
run lose out in productive competition with men and firms who. 
by taking an attitude more in keeping with the spirit of the times, 
regard their business as something in the nature of a public utility for 
public ends, and thereby secure the confidence, good will, and hearty 
co-operation of their employees. 

The demand for a voice in industrial government — One way to do 
this, according to the advocates of co-operative management, is to 
recognize the workers' desire for a measure of self-government in 
industrial relations, as he is supposed to have it in political affairs. 
This desire for a voice, co-ordinate with the employer's, in the control 
of working conditions, the organization and change of processes, and 
all the hundred and one details that are involved in the relations 
between employer and workman, is in places second in its intensity only 
to the desire for higher wages and more leisure. It is a demand less 
easy of definite expression — although the passionate adherence to the 

1 Thorstein Veblen, The Instinct of Workmanship. 

2 Cf. T. N. Carver, The Religion Worth Having, and hssays in Social Justice. 



closed shop principle is one expression of it— than that for higher 
wages or shorter hours, but in the long run it wjll be found of very 
great significance both to the maintenance of industrial peace and to 
the development of productive efficiency. 

The war has forced us to the recognition of the human factor 
much sooner, much more generally, than would otherwise have been 
the case. One of the beneficial by-products of the war w T ill be a 
quickened consciousness of the importance of human psychology in 
industry and the determination on the part of employment and pro- 
duction management to utilize, rather than to antagonize, the human 
factor. 



24 



Chapter II. Psychology, Democracy, and Efficiency 



1. Psychology in Relation to Industrial Management 

Handling men — The psychology of the working man is not essen- 
tially different from that of any other individual. But managers and 
employers have assumed that it is different. This assumption is an 
error of judgment and an obstacle to effective industrial management. 
The latter depends, as we have seen, on the one hand on knowledge of 
materials and natural forces, and on the other on knowledge of human 
nature. To handle men you have to know them, and to know men 
means to know their psychology, their motives, their attitudes toward 
the world in which they live and work. 

Men are handled by appeal both to their feelings and to their 
reason. Primarily, the way men reason is determined by their emo- 
tional attitudes. To get a man to act and to act substantially in the 
way you desire, you have to touch the right springs to his action. In 
other words, you have to appeal to the appropriate motives, and if 
these do not exist in him, you have to create them, if possible. 1 

Modern "behavioristic" psychology, while as yet it is in an unde- 
veloped state, is able to throw a flood of light upon this problem of 
human engineering. We find men acting in accordance with certain 
hereditary tendencies and certain acquired habits which motivate and 
guide most of their activities. Human desires and interests in all 
their seeming infinite variety are largely acquired from the social 
environment of the individual, but they all rest back upon inherited 
instincts or racial desires which are found upon inquiry to be operative 
in the life of every human individual. There are numerous classifica- 
tions of these instincts and there is no agreement among psychologists 
as to their exact number or the exact dividing line between instincts 
and acquired desires and habits. Some psychologists recognize as 
many as twelve or fifteen so-called fundamental or primary instincts, 
while others prefer to reduce them to three — fear, sex, and hunger. 
Without attempting to consider the academic question as to the number 
of primary instincts, we may for our purpose be fairly confident that 
the following are the most significant to our problem: the instinct of 
workmanship 2 or self-expression, the instinct of pugnacity, the desire 
for recognition and distinction, and the gregarious tendency. 

1 Cf. Robert B. Wolf, "The Creative Workman," an address delivered before the 
Technical Association of the Pulp and Paper Industry. Dayton, Ohio. May 16. 191 S. Also 
by the same writer. "Individuality in Industrv," United States Bureau of Labor Statistics; 
Bulletin No. 227, October, 1'917, pp. 193-206. 

2 Mr. Veblen's term. Mr. R. B. Wolf calls it the "creative impulse." 

25 



Balked dispositions — Whether a desire be instinctive or merely the 
product of suggestion and imitation, we know that a thwarted desire 
may be the cause of profound disturbance to a person's mental 
equilibrium. If the human organism is instinctively "set" to a given 
action or line of activity — in other words, if instinct stimulates us to 
do thus and so — and this action is obstructed, delayed, or prevented, 
the resulting mental state is what some psychologists call a "balked 
disposition" 1 or "repressed wish." 2 Too many repressed desires result 
in a state of chronic balked disposition, and may lead to a highly 
nervous condition, and not infrequently to neurasthenia and to social 
unrest. 

The instincts of workmanship and of self-expression repressed by 
modern industry — The significance of all this for industrial psychology 
lies in the fact that modern industry gives the laborer's instincts of 
workmanship and self-expression little scope, and that consequently a 
whole working class may be found to be suffering from repressed desire 
and balked disposition. A balked disposition, if strong, not infre- 
quently produces a highly pugnacious attitude. Energy which would 
normally be expended in constructive work then tends to find release 
in disputation and conflict. 

Two reasons are advanced for holding that modern industry does 
not give sufficient scope to the instincts of workmanship and self- 
expression. In the first place, actual industrial processes have been 
reduced very largely to routine tasks, and the responsibility thrown 
upon most workers has been reduced to the minimum. With the wide- 
spread war-time introduction of dilution — i. e., the substitution of 
unskilled machine tenders, etc., for skilled workers — the laborer's 
responsibility and chance to put himself into his work are still further 
reduced. There is no need to dwell upon this fact, for students of the 
labor problem have again and again alluded to its significance. In the 
second place, the instinct of self -expression is violated by the autocratic 
administration of industrial establishments. 3 It is unreasonable to sup- 
pose that men accustomed to political self-government will ever be 
content without some measure of self-government in their daily work. 
Unless factory administration is so arranged that the workmen have 
voice, at least a consultative voice, in co-operation with the representa- 
tives of the employers, in the management of all the conditions 

1 See Wallas, "The Great Society." 

2 See Holt, "The Freudian Wish." 

3 On the importance of instinct and repressed desires in industrial psychology see; 
Montague Ferry, "Chasing the 40%," in 100% the Efficiency Magazine, Nov., 1917, pp. 41-50; 
Garton Foundation, Memorandum on the Industrial Situation after the War, London, 1916, 
reprinted by the Emergency Fleet Corporation, Philadelphia, 1918; R. F. Hoxie, Scientific 
Management and Labor, 1916; Helen Marot, Creative Impulse in Industry, 1918; C. H. 
Parker, "Motives in Economic Life," in American Economic Review Supplement, March, 
1918; Ordway Tead, Instincts in Industry, 1918; Thorstein Veblen, The Instinct of Work- 
manship, 1918, ch. VII; R. B. Wolf, The Creative Worker, an address delivered before the 
Technical Association of the Pulp and Paper Industry, Dayton, Ohio, May 16, 1918. 

26 



pertaining to labor in the factory, we may be fairly sure that unrest and 
discontent will continue to exist. Not only will there be balked disposi- 
tions arising from the obstructed instinct of self-expression, but a 
repression of the desires and habits of self-government arising from 
our political democracy — attitudes which are carried over into the 
industrial realm only to find their outlet dammed by the employers' 
unwillingness to countenance any measure of democracy in the factory. 
Production managers make all the physical arrangements of the 
plant, with little or no personal conference with the employees. Wage 
rates, hours of labor, and working conditions are fixed either in an 
autocratic manner, in which the individual laborer is approached in 
the take-it-or-leave-it spirit, or are the result of formal conferences for 
collective bargaining between the employer and the higher representa- 
tives of organized labor, with whom the rank and file come into little 
direct contact. Men are not uncommonly hired and fired — where the 
unions are not strong — without hearing or assigned reason. Changes 
in process which may involve the discharge or reduction of wages of a 
large number of employees are introduced without consultation with 
those most concerned. All these things are done on the old legal and 
economic theory that a man's business is his own to handle as he sees 
fit. 1 It should be fairly evident that this theory tacitly regards the 
workmen as entitled to no more regard than the material equipment 
of the plant. It neglects the human factor in industry. Probably few 
employers would admit that the worker has a shadow of vested inter- 
est in his job, even though upon his job depends his own livelihood and 
the life of his family, although it has become a conventional and legal 
truism that the investor is entitled to a "fair rate of return" on his 
money, and that changes in law or social organization must be made 
with due reference to this vested interest. Only in the abnormal con- 
ditions involved in conscription and in demobilization of citizen armies 
do we find any tendency to the notion that the worker has a vested 
right to his work. It is not our purpose to argue that it is possible to 
give legal recognition to any such vested interest of the worker, even 
should it be admitted to exist. It should be pointed out, however, that 
the worker does have a vested interest, in the psychological sense of the 
term, in his job, and that failure to recognize this results in repressed 
desires and balked dispositions which play no inconsiderable part in the 
causation of industrial unrest and inefficiency in production. 

1 "A manufacturer tries to tell a conventional world that he resists the closed shop 
because it is un-American, loses him money, or is inefficient. A few years ago he was more 
honest when he said he would run his business as he wished and would allow no man to 
tell him what to do. His instinct of leadership, reinforced powerfully by his innate instinctive 
revulsion to the confinement of the closed shoo, gave the true stimulus. His opposition is 
psychological, not ethical." — Carleton H. Parker, "Motives in Economic Life," in American 
Economic Reviezv Supplement, March, 1918, p. 218. 

27 



2. The Psychology of Industrial Unrest 

All unrest being due to thwarted desires and repressed instincts, 
it follows that the causes of industrial unrest may be stated in psychor 
logical terms. Unrest arising from what the workman regards as 
insufficient wage is usually due to unsatisfied desires for the attainment 
and maintenance of a standard of living— physical and social — above 
that which his actual wages will support. In this, desires for self- 
expression, distinction, and recognition involve imitation and emulation 
of those who set the standards of repute. The wage level, together 
with the hours of work, thus occupies a strategic position in the deter- 
mination of the worker's phychology, because upon the amount of his 
wage is determined in a large measure the spiritual level of his exis- 
tence. It would be an error, howeA'er, as already suggested, to assume 
that raising wages and shortening hours of labor would remove all the 
important causes of industrial unrest. There would still remain 
unsatisfied desires for self-expression and for a measure of self-govern- 
ment, without which self-expression is impossible. It is not to be 
supposed that all workmen want is high wages. From a mere mone- 
tary point of view, employers do well to recognize that there are other 
powerful motives for honest and efficient work, and that to the extent 
to which these motives can be brought into play in personal interest in 
the work in hand and in community interest in factory organization 
and functions, individual restlessness and the industrial unrest to which 
it tends will be diminished, and peace and efficiency attained, possibly 
at a lower wage than would otherwise be feasible. In other words, 
it is possible that if workers had more voice in the government of the 
intimate details of industry they would make fewer demands for 
impossible wage terms. 

Development of hostile community instincts — Attention may here 
be called to the gregarious instinct alluded to above. This expresses 
itself in the sense of being one of a community in which sympathetic 
understanding and confidence exists and in which a friendly square 
deal is expected and maintained as a matter of course. Stranger groups 
always maintain a more or less suspicious, if not hostile, attitude toward 
each other, and co-operation between them is difficult to obtain. More 
powerful than differences of economic interest in keeping groups from 
developing mutual understanding and co-operation are differences of 
language, which render communication difficult. Difficulty of com- 
munication, lack of understanding, and absence of facilities for mutual 
action repress the instincts of sympathy which might otherwise develop 
in the relation between groups, and allow the growth of pugnacity and 
group egotism or class consciousness. The more this develops the 
harder it is to restore sympathetic relations. Illustrations of this fact 

28 



can be found in every conflict between labor and capital. Employers 
develop a community spirit of their own and labor develops either a 
union spirit, or a class. consciousness with a fanatical adherence to the 
doctrine of class conflict. To the extent, therefore, that machinery 
is not provided for intimate contact between the immediate represen- 
tatives of labor and those of the employer, the two isolated community 
instincts tend to develop an attitude of hostility. The remedy is to be 
found in enlargement of view and understanding, in the assimilation 
of the two communities through joint discussion and conference, not 
too formal in character. In other words, employer and employee must 
learn to speak the same language. They will never learn to do this 
until the employer becomes keenly conscious of the worker's demand 
for self-government in industry. 

Lack of confidence — The Commission of Inquiry into Industrial 
Unrest, in its report submitted to the British Ministry of Munitions in 
1917, finds that the psychological causes of unrest lie in lack of con- 
fidence. Many of the causes given in the reports from geographical 
divisions are merely manifestations of this. It "shows itself in the 
feeling that there has been inequality of sacrifice, that the Government 
has broken solemn pledges, that trade union officials are no longer to 
be relied upon, and that there is a woful uncertainty as to the indus- 
trial future." 1 Allusion is here made to the workers' distrust both of 
the Government and of the trade unions. "The feeling in the mind of 
the workers that their conditions of work and destinies are being 
determined by distant authority over which they have no influence 
requires to be taken into consideration, not only by the Government, 
but by the unions themselves." 2 Through the body of the Report, 
especially where the commissioners deal with the works committee idea, 
are scattered a number of allusions to the need of co-operative plant 
government as an essential aid in the establishment of industrial 
confidence. 

Summary— The trend of our discussion thus far has been as 
follows : 

(a) Production is a process involving co-operation between phys- 
ical and psychical factors ; the factory, as a productive unit, is a 
co-operative organization. 

(b) Its productivity depends upon the efficiency of its organization 
and management. 

(c.) This, in turn, depends upon the proper recognition and hand- 
ling not only of, the physical but more especially of the human factors. 

1 United States Bureau of Labor Statistics, Bulletin No. 237, p. 12. 

2 Ibid., p. 1.3. . . 

29 



(d) Effective co-operation is never secured between persons or 
classes who are indifferent, sore, or hostile toward one another, or with 
people who are laboring under chronic balked dispositions. 

(e) Soreness, suspicion, and hostility, are likely to develop where 
the natural desire for self-government, whether in civic life or in 
industry, is denied. 

(/) Employers must expect continued demand on the part of labor 
for a larger share in the product of industry; labor when thoroughly 
organized to use its political power, can either force upon industrial 
society its definition of a square deal, or for the time being destroy all 
industrial efficiency, if forced into syndicalist philosophy and methods. 

(g) While a permanent increase in real wages must be granted, 
employers must not rely too much upon wage increases, reductions of 
hours, etc., nor upon improvement in working conditions brought about 
autocratically — for instance, paternally conceived and imposed "indus- 
trial betterment" or "welfare" schemes — to allay discontent ; for indus- 
trial unrest is due also, and in no small degree, to the desire of the 
working man for a recognition of his voice and personality in plant 
management. 

3. The Demand for Industrial Democracy 

The real content of democracy — A rational democracy holds: 

(1) That no human individual should be regarded primarily as a 
means to the fulfillment of the purposes or desires of some other 
individual ; 

(2) that no class is to be regarded as the means to the interests 
of another class as end ; 

(3) that opportunity, and so far as opportunity is dependent upon 
them, material wealth and income should be distributed in proportion 
to capacity and willingness to use them for the collective good, and 

(4) that to secure the operation of these principles all forms and 
devices of autocracy, both in political life and in industry, must give 
way to government and control by the people as a whole. 

Application of these principles to the industrial situation — Now 
if we apply these principles to the interpretation of the industrial situa- 
tion, what do we find? We find, to put the matter baldly and without 
the refinement of the qualifications which adequate presentation of the 
subject would require, that the employer, generally speaking, regards 
the laboring man simply as a necessary means to the productive process. 
Fortunately this attitude is undergoing swift modification, but on the 
part of a certain type of employer it is still altogether too prevalent. 
Two influences are bringing about a rapid change in attitude. In the 

30 



first place employers are discerning more clearly the meaning of loyalty, 
and now perceive that this spirit cannot be obtained through the old 
autocratic and legalistic attitudes. Secondly, there is more general 
recognition of the fact that political democracy without a measure of 
industrial self-government is somewhat hollow. The fact that American 
working men have been fighting in Europe to make the world safe 
for democracy doubtless helps to suggest the ideal of a more pervading 
democracy at home. Consistency, if nothing else, will cause us to 
consider the possible reflections of American soldiers returning to 
industrial life. 

Having had, as a necessity of war training, their instinct of pug- 
nacity awakened, will the industrial conditions to which they return 
give scope to this instinct to the detriment of production and danger 
to industrial peace, or will employers grasp the situation and provide 
for the submergence of the conflict instinct in a community spirit which 
shall be provided for by some machinery of industrial democracy within 
each manufacturing establishment, if not within industries as a whole ? 
Upon the answer to this question hangs no small part of the social and 
economic destinies of our country in the next few years. 

The content of industrial democracy — The content of industrial 
democracy is large and elastic. Ethically it means a "square deal" in 
wages and working conditions. What a square deal in wages is no 
living man can say, definitely. The irreducible minimum is a "living 
wage" — supposing that can be defined; but it is a certainty that labor 
will not consider that minimum a fair wage. Nor, possibly, is there 
any justifiable economic or ethical theory which makes it so. Labor 
will continue to demand, with ever greater solidarity and cogency, 
collective bargaining with regard to wages, hours, working conditions, 
and all those matters which mutually affect employers and employees 
and upon which selfish interests conflict. Whatever may be decided to 
be a fair wage and just working conditions will not stay decided or 
really be decided unless worked out in joint man-to-man conference 
between the representatives of the two sides. This is the essence of 
industrial democracy — a machinery and a spirit in which all concerned 
shall have effective voice in matters which concern aU. This necessarily 
involves continuous industrial peace — which cannot be secured bv any 
conciliation or arbitration scheme thus far proposed or tried out. Such 
schemes settle disputes only after they arise. Industrial democracv — 
the rational government of collective concerns collectively— involves 
the settlement of disputes before they arise (to use an Irish bull). In 
other words, industrial democracy would aim to reduce to a minimum 
the development and the intensity of hostile attitudes, and to put in 
their place the effective will to co-operate. 

31 



4. Democracy and Responsibility 

Granting the desirability of realizing these ideals, the practical 
question arises: Can industrial self-government or co-operative man- 
agement be developed "Without destroying industrial efficiency by 
decentralizing responsibility and virtually tying the hands of the man- 
agement? If democracy means divided or uncertain responsibility in 
administration, it spells inefficiency. This fact is generally recognized 
and may be taken as definitely established. Under such conditions it 
is difficult or impossible for the public to locate, responsibility for short- 
comings ; and that baffling process known in poker and governmental 
circles as "passing the buck'' becomes the order of the day. 

Political analogies — It is well to recall here the fact that the essen- 
tial problem in American municipal government has been that of secur- 
ing democracy and responsibility. Until the commission form of city 
government was instituted, there was no way of fixing administrative 
responsibility; dishonesty and inefficiency were consequently inevitable. 
The commission plan improved matters greatly because it centered 
responsibility in a small committee instead of dividing it between a 
bi-cameral council, a more or less powerless mayor, and a number of 
council committees. But still the responsibility was divided, and to 
remedy the situation the city manager plan was proposed, by which the 
responsibility for getting things done is centered in one man, while 
questions of policy may be left to a commission and ultimately to the 
electorate at large. Under either the commission plan or the manager 
plan, or some combination of the two, publicity is a sine qua non of 
success. It is a truism which we cannot outgrow, that any system can 
insure efficiency, in the largest sense, only if it has in it the live interest 
and spirit, and over it the watchfulness of the whole community. In 
this sense responsibility cannot be centralized. "A people get the sort 
of government they deserve." The whole people must determine the 
larger policies affecting the general welfare, and leave the execution of 
policies decided upon to their authorized representative (manager or 
commission). The wisdom, breadth, and progressiveness of these 
policies will depend upon the character, temper, and ideals of the 
electorate, not primarily upon their representatives. 

Administrative responsibility and policy-determining functions — 
Applying these principles to industry, we are led to the following 
conclusions : 

(1) Responsibility for the execution of policies and for the admin- 
istration of technical detail must be left with the plant management. 

(2) determination of policies relating to the commercial end of 
the industry — purchase, sales, advertising, financial policy, etc. — must 
ordinarily be left to the responsible representatives of the owners of 
the plant. There may, however, be exceptions to this statement. 

32 



(3) Policies which bear on working conditions, wages, and any 
other matter affecting the interests of the employees should not be 
determined upon or changed until the employees or their constitu- 
tionally chosen representatives have passed upon them. In . case of 
difference of opinion between employers and employees, the matter 
should go to joint conference. 

(4) Publicity will be as beneficial in industrial government as else- 
where. Even where the final authority rests with the management and 
must remain with it, and there is no special obligation to consult the 
men, the employees should be informed of what is being done. 

(5) Both managers and men must arrive at a larger sense of 
responsibility, not only toward each other, but toward society at large. 
It is too much to expect that under a competitive system in which 
production is for profits primarily and for social welfare only in so far 
as profits result therefrom, either employers or employees will be quick 
to come to this social point of view and this larger conception of indus- 
trial responsibility. But there are encouraging indications that we are 
gradually approaching such a viewpoint, and our approach will be 
hastened by a well-grounded fear of industrial warfare and friction 
which, if allowed to develop, will destroy our chances to meet 
effectively the competition of foreign producers in the open markets 
of the world. . 

Bearing in mind the meaning and the necessity of this newer and 
broader sense of responsibility, and also the desirability of publicity 
and conference on all matters which affect labor in any way, we cannot 
escape the conclusion, from our experience with the older type of 
political democracy, that it would be unreasonable, under our present 
social organization, to propose a form of industrial democracy which 
would take away from the plant manager his final responsibility for 
seeing that policies, once decided upon, are carried out. We can have, 
however, without impairing responsibility, joint discussion of policies 
and methods in production and of all those multifarious matters which 
affect the interest of the employees as well as that of the employer. 
With extension of education and experience, and the growth of con- 
fidence, many matters which the management now considers to be 
wholly within the sphere of its own autocratic functions can safely and 
profitably be left to the control of the workers themselves. 

Where the dividing line of responsibility and of function between 
manager and representatives of the employees will fall, or how much 
power can be turned over to the employees, it is impossible to say 
definitely. These matters will vary from industry to industry, from 
locality to locality, and with the character and education of the working 
force. It goes without saying that with an ignorant and illiterate mass 

33 



of workers industrial representation cannot go as far as among a 
higher class of employees. (The work of the Loyal Legion of Loggers 
and Lumbermen in the Pacific Northwest, however, seems to indicate 
that even among what has been considered the roughest and most 
reckless class of laborers remarkable results may be obtained from 
co-operative management under proper auspices.) There may be every 
gradation up to a full-fledged co-operative system in which the workers 
themselves own the plant and hire managers and technical experts to 
carry out their policies. Practical proposals to meet the present situa- 
tion cannot, however, be based upon the idea that any significant change 
in the ownership of industrial plants is to take place. We must meet 
the situation as it is. 

It is of the utmost importance to a clear understanding of co-opera- 
tive management that the works committees and industrial councils 
with which these pages have to deal should in no way be confused with 
the Russian shop committees 1 or the workmen's councils advocated by 
the syndicalists and the I. W. W. agitators. 

Co-operative management, involving no transformation in the 
ownership of industrial equipment, and no abolition of the final respon- 
sibility of the present owners and managers of industry, but at the same 
time giving the worker a real voice in industrial government, may be 
regarded not only as an avenue to a square deal but as an insurance 
against the spread of ideals and demands which would threaten both 
the present ownership of industry and the measure of productive 
efficiency and order which we have achieved under "capitalistic" 
ownership. 

We may be very sure that it was no adherence to socialist or Bol- 
shevistic ideals of industrial ownership and control which led the British 
Government, under the leadership of Lloyd George, to appoint a Recon- 
struction Committee and under it a Sub-Committee on Relations 
between Employers and Employed, and later to adopt this sub-commit- 
tee's recommendations looking toward the establishment of works com- 
mittees and national joint industrial councils in every organized English 
industry. It is probable, the rather, that rational moderates saw in 
the proposals of the Whitley Committee, and in the similar proposals 
of the Garton Foundation, the Industrial Reconstruction Council, the 
National Alliance of Employers and Employed, etc., a fair and essential 
step in industrial reconstruction, necessary on the one hand as a 
measure of a rational industrial democracy and a common sense square 
deal, and on the other as a social modification to be made betimes to 
preserve the nation from the flood of Bolshevist extremism which was, 
and is. threatening the world. 

1 For an account from a socialist viewpoint of these Russian shop committees after 
the former owners abandoned their plants, see "The Structure of the Soviet," by John Reed, 
in the lAbsrator, November, 1918, pp. 35-37. 

34 



Chapter III. The Whitley Committee Recommendations 



The suggestion for the establishment of works committees in 
American industrial plants and joint industrial councils in American 
industries does not come from the thin air of idealistic theorizing. 
As a starting point we have : (a) a very considerable body of concrete 
and successful experience with such committees in English industry; 

(b) the beginnings, here and there, of experience with works com- 
mittees, or analogous organizations, in American establishments, and 

(c) the careful inquiry and far-reaching recommendations of the 
Whitley Committee. 

1. The Whitley Committee 

The British Government's Reconstruction Committee appointed in 
November, 1916, a "Sub-Committee on Relations between Employers 
and Employed." This came to be known as the Whitley Committee. 

Instructions — The instructions to the Sub-Committee were: 

(1) To make and consider suggestions for securing a per- 
manent improvement in the relations between employers and 
workmen. 

(2) To recommend means for securing that industrial con- 
ditions affecting the relations between employers and workmen 
shall be systematically reviewed by those concerned, with a view 
to improving conditions in the future. 

Membership — The membership of the Committee, including as it 
did the well-known economist, Professor S. J. Chapman, and Mr. J. A. 
Hobson, the leading English student of industrial problems ; Mr. J. R. 
Clynes, Mr. Robert Smillie, and Miss Mona Wilson, representing 
organized labor : and Sir George J: Carter, Sir Maurice Lew, Sir 
Thomas Ratcliffe-Ellis, and Sir Gilbert Claughton, representing capital 
and employers, is proof of the representative character of the Com- 
mittee. The Chairman, the Right Hon. J. H. Whitley, has been a 
member of Parliament from Halifax since 1900, and is Chairman of 
Committees of the House of Commons. He is also senior partner of 
S. Whitley & Co., cotton spinners. 1 

1 The full membership at the time of the issuance of the Interim Report was as follows: 
The Right Hon. J. II. Whitley, M. P., Chairman. 

Mr. F, S. Button. Miss Susan Lawrence. 

Sir George J. Carter, K. P>. E. Mr. J. I. Mallon. 

Prof. S. J. Chapman, C. B. E. Sik tiros. R Ratcliffe-Ellis. 

Str Gilbert Claughton, Bart. Mr. Robert Smillie. 

Mr. J. R. Clynes, M. P. Mr. Allan M. Smith. 

Mr. J. A. Hobson. Miss Mona Wilson, 

Secretaries: Mr. H. J. Wilson. C. B. E., Ministry of Labor. 

Mr. Arthur Greenwood, Ministry of Reconstruction. 
Later Mr. F. N. Hepwortii, Sir Maurice Levy, Bart., M. P., and Mr. P. R. H. 
Williams were added. 

35 



Causes leading to the appointment of the Committee — The causes 
leading up to the appointment of the Committee lay chiefly in the grow- 
ing unrest of labor and in the conviction on the part of leading men 
that English industry, in order to meet the tremendous competition to 
which it would undoubtedly be subjected after the war, would have 
to have peace and co-operative good feeling between employers and 
employees, as a prime requisite to efficiency. 

The Garton Foundation — During the summer of 1916 the Garton 
Foundation circulated its ''Memorandum on the Industrial Situation 
after the War" among employers, representatives of labor, and public 
parties. It was then published, in October, 1916, in the light of the 
criticisms received. 1 This Memorandum is a remarkable document — 
a revelation of the swift change of sentiment and the rapid development 
of broad democratic ideals, on the part of even conservative classes, 
in matters of industrial organization. The Trustees of the Garton 
Foundation are the Rt. Hon. A. J. Balfour, M. P., the Rt. Hon. Vis- 
count Esher, G. C. B., and Sir Richard Garton. As the Preface 
explains : 

This Memorandum is the work of a group of men who came 
together, at the instance of the Garton Foundation, for the purpose 
of discussing the industrial situation in this country at the close 
of the present war. The group included men of very varied views, 
in touch with both the capitalist and employing classes and organ- 
ised labor, as well as with financial, economic, and administrative 
circles. As a result of their inquiries and of correspondence and 
discussion with representatives of all parties to industry, they 
became convinced that the return from war to peace conditions 
would inevitably involve great difficulties, which might result, if 
not carefully and skilfully handled, in a grave outbreak of 
industrial disorder. 

In its final section, on "The Fundamental Problem," the Memo- 
randum makes extensive recommendations for co-operative manage- 
ment through industrial councils and works committees. 

This Memorandum, together with discussion from which it arose 
and which it occasioned, was undoubtedly a powerful factor lead- 
ing to the formation of the Whitley Committee, and the Committee 
perhaps took from it the suggestion for its recommendations for 
industrial councils and works committees. 

Industrial councils in building trades — According to Mr. C. V, 
Corless 2 the Whitley Committee received the suggestion for its 

1 By Harrison & Sons, St. Martins Lane, London, W. C. Reprinted by the United 
States Shipping Board Emergency Fleet Corporation, Philadelphia, 1918. 

2 "The Whitley Scheme, a Step Toward Democratizing Industrial Relations," Montreal, 
1918. Reprint of a paper read before the Canadian Mining Institute. 

36 



recommendations for industrial councils and works committees from a 
proposal made to the unions in the building trades by Mr. Malcolm 
Sparkes, a building trades employer of London. , In the summer of 
1914 the federated employers and organized employees in the London 
building trades had a serious and costly disagreement which reached 
a point where a widespread lockout and strikes involving a number of 
other trades seemed inevitable. The outbreak of the war occasioned 
an agreement with reservation of some points to be settled at a more 
convenient time later. At this time Mr. Sparkes began to think out 
some method by which the useless and wasteful antagonism between 
employer and employee might be overcome and "the underlying unity 
and good will in the country's service displayed by both might be made 
operative in times when the need for it was less dramatic and con- 
spicious, but hardly less urgent." In 1916 a new crisis developed in 
the London building trades and Mr. Sparkes now presented a formal 
plan for industrial representation in a "National Industrial Parliament 
for the Building Industry." 1 

Mr. Sparkes's plan involved not only the establishment of a national 
industrial parliament or council for the building industry, but also joint 
district boards to be set up by the National Federation of Building 
Trades Employers and the National Associated Building Trades 
Council for the discussion of the proposals of the industrial parliament 
and the furnishing of local facts and statistics as required. The plan 
further contemplated the establishment of works committees in par- 
ticular shops. It appears that the painters and decorators adopted 
Mr. Sparkes' proposal, at least in part. Their experience with indus- 
trial councils already extends over a year and is said to have proved 
their practicability. The district councils in this trade have met regu- 
larly under the masters' and the men's chairmen alternately and have 
successfully carried out some important constructive work at various 
centers in the country, besides averting some disputes. 2 

Early in 1916 the scheme was offered by Mr. Sparkes to the Lon- 
don Committee of Carpenters and Joiners, who strongly approved it 
and sent it forward to their national executive. It was fully discussed 
by the national council of these trades, and unanimously recommended 
Jto the National Associated Building Trades Council. This body dis- 
cussed, printed, and circulated it among the twelve affiliated unions 
and at a conference in October it was adopted unanimously by 22 
delegates representing the national executives of the principal trade 
unions. In November the Building Trades Council voted unanimously 
to lay the scheme before the National Federation of Building Trades 

1 A Memorandum on Self Government in Industry together with a Draft for a Builder's 

National Industrial Parliament. London. Harrison & Sons, [ 191S. ] Fp. 28 

- See Corless, "The Whitley Scheme," p. 5. 



Employers and asked for a preliminary conference on it. It is signifi- 
cant that the trade unions, after the fullest discussion, decided that 
the scheme was entirely feasible and voted unanimously to endorse it 
as a method of reducing friction and securing co-operative effort for 
the common good of the industry. 1 

Convention of iron and steel manufacturers — Still another impetus 
seems to have come from the convention of representatives of iron and 
steel firms and an address delivered to them by the Prime Minister of 
Australia, Mr. Hughes, then (April, 1916) visiting England. Repre- 
sentatives of about 300 firms passed a resolution in favor of bringing 
these industries together in a strong central organization, and appointed 
a committee to consider what should be the nature, scope, and object 
of the organization. In its report this committee later pointed out that 
increased production, which would be the greatest factor in national 
prosperity after the war, could be obtained only by a more cordial 
co-operation between employers and employees. At the outset, the 
report said, any organization of the industries should be prepared to 
co-operate with labor. 

The report set out many examples of the questions which might 
have to be dealt with, among them being the question of means of 
giving work people a continuing interest in the industry which employs 
them, and the question whether some method of working associations 
of employers and employees responsible to their members should be 
adopted. 

The committee suggested that the central organization should be 
a National Advisory Council of Industry, consisting of a body of elected 
representatives of employers and a body of elected representatives of 
employees who might meet separately or jointly. The joint meetings 
should be presided over by a Minister of Industry. In suggesting the 
appointment of such a Minister, the committee held that the appointing 
of an individual retaining a connection with either the employers' or the 
employees' side of industry would be undesirable, as would be the 
appointment of an individual having only political or legal qualifica- 
tions. It was suggested that while a Minister of Industry should not 
be a permanent official, neither should his appointment or retiral be 
dependent on a change of Government. Local councils, the report 
further stated, might be desirable for large industrial areas. - 

Whatever suggestion or inspiration the Whitley Committee 
received from the Garton Memorandum or from the movements started 
by Mr. Sparkes and Mr. Hughes, it is evident that public sentiment was 
prepared for recommendations looking toward industrial democracy in 
some form. 

1 See "Industrial Self Government," United States Bureau of Labor Statistics, Monthly 
Labor Review, October, 1918, pp. 54-61. 

2 London Times, December 6, 1916. 

38 



The actual appointment of the Whitley Committee was preceded by 
conferences between the Parliamentary Committee of the Trades Union 
Congress and the Employers' Parliamentary Committee, so that all 
parties and classes were aware of the importance of the step. 1 

2. Reports of the Whitley Committee 

The Reports — The Whitley Committee's first Report — the so- 
called Interim Report 2 — was drawn up in March, 1917. 

It proposed a three-fold system, comprising works committees, 
district councils, and a national industrial council, in each industry in 
which employers and employees were sufficiently well organized for 
the purpose. This Report met with instant recognition and interest. 
In October, 1917, the Committee submitted a "Second Report on Joint 
Standing Industrial Councils" (Cd. 9002) and on the same date a 
"Supplementary Report on Works Committees" (Cd. 9001). The 
latter gives detailed recommendations for the establishment of works 
committees. Following the Second Report, which made recommenda- 
tions touching on the establishment of national councils in unorganized 
industries, the Minister of Reconstruction and the Minister of Labor 
issued a "Joint Memorandum on Industrial Councils and Trade Boards" 
(Cd. 9085), explaining the Government's objections to the recommen- 
dations made in the Second Report. Later followed a Report on Con- 
ciliation and Arbitration (Cd. 9099), and a Final Report (Cd. 9153). 

The Whitley plan — To understand the Whitley Committee's recom- 
mendations, it is necessary to remember that English industry is much 
more highly and effectively organized than is American, both on the 
side of labor and on that of employers. In its Interim Report the 
Committee made recommendations for thoroughly organized industries, 
reserving recommendations for industries wholly or in part unorganized 
to its Second Report on Joint Standing Industrial Councils. 

The proposal for the establishment of works committees is only 
one part, and perhaps not the most important part, of the Whitley plan. 
The plan at large provides, as above noted, that there shall be estab- 
lished in each industry in which trade unions and employers' associa- 
tions assure effective organization, (a) a national industrial council, (b) 
district councils, (c) works committees. These organizations are to be 
representative both of employers and employees. Their central func- 
tion is to provide facilities for conference and co-operation between the 
representatives of employers and employees respectively. 

Recommendations of the Interim Report — The Whitley Com- 
mittee's recommendations were evidently based upon the assumption 

1 London Times, November 9. 1916. 

2 Reconstruction Committee, Sub-committee on Relations between Employers and Em- 
ployed: Interim Report on Joint Standing Industrial Councils (Cd. 8606). 

39 



that the national industrial councils would be organized before the 
district councils and that they would be a logical and effective influence 
toward the widespread establishment of wc nmittees. 

In the well-organized industries one of the first questions to be 
considered should be the establishment of local and works organi- 
zations to supplement and make more effective the work of the 
central bodies. It is not enough to secure co-operation at the 
centre between the national organizations : it is equally necessary 
to enlist the ty and support of employers and employed in 

the districts and in individual establishments. The national indus- 
trial council should not be regarded as complete in itself ; what is 
needed is a triple organization in the workshops, the districts, and 
the nation. Moreover, it is essential that the organization at each 
of these three stages should proceed on a common principle, and 
that the greatest measure of common action between them should 
-ecured. 

The circumstance; - : the present time are admitted on all sides 
to offer a great opportunity- for securing a permanent improvement 
in the relations between employers and employed, while failure to 
utilize the opportunity may involve the nation in grave industrial 
difficulties at the end of the war. 

It is generally allowed that the war almost enforced some 
reconstruction of industry, and in considering the subjects referred 
to us we have kept in view the need for securing in the develop- 
ment of reconstruction the largest possible measure of co-operation 
between employers and employed. 

In the interests of the community* it is vital that after the war 
the co-operation of all classes, established during the war. should 
continue, and more especially with regard to the relations between 
employers and employed. For securing improvement in the latter, 
it is essential that any proposals put forward should offer to work 
people the means of attaining improved conditions of employment 
and a higher standard of comfort generally, and involve the enlist- 
ment of their active and continuous co-operation in the promotion 
of industry. 

To this end. the establishment for each industry of an organi- 
zation., representative of employers and work people, to have as its 
object the regular consideration of matters affecting the progress 
and well-being of the trade from the point of view of all those 
engaged in it. so far as this is consistent with the general interest 
of the community, appears to us necessary. 

Many complicated problems have arisen during the war which 
have a bearing both on employers and work people, and may affect 
the relations between them. It is clear that industrial conditions 

40 



will need careful handling if grave difficulties and strained rela- 
tions are to be avoided after the war has ended. The precise nature 
of the problems to be faced naturally varies from industry to 
industry, and even from branch to branch within the same industry. 
Their treatment consequently will need an intimate knowledge of 
the facts and circumstances of each trade, and such knowledge is 
to be found only among those directly connected with the trade. 

That the Committee was careful to avoid antagonizing organized 
labor or any appearance of wishing to curtail trade union functions is 
clear. 

As it is of the highest importance that the scheme making 
provision for these committees should be such as to secure the 
support of the trade unions and employers' associations concerned, 
its design should be a matter for agreement between those 
organizations. 

The proposals of the Committee look to the extension of collective 
bargaining to all industry. The Committee does not purpose, however, 
that its industrial councils shall interfere with the existing machinery 
of conciliation boards or other organizations for joint conference 
between employer and employee. A council would be free, however, 
if it chose and if the bodies concerned approved, to merge existing com- 
mittees, etc., in the council or to link them with the council as sub- 
committees. 1 

The councils, both national and district, as well as the works com- 
mittees, are to devote themselves, not primarily to disputes, to the 
fixation of wage scales, the making of specific wage agreements, and 
the like, but to matters of policy. 2 

Suggested questions for industrial councils and works committees 
— The questions with which it was suggested that the national councils 
should deal or allocate to district councils or works committees com- 
prise the following : 

(i) The better utilization of the practical knowledge and 
experience of the work people. 

(ii) Means for securing to the work people a greater share 
in and responsibility for the determination and observance of the 
conditions under which their work is carried on. 

1 Interim Report, Appendix, question and answer 2. See also section 15 of the Report. 

2 It is interesting to note, however, that one of the first councils actually established — 
that of the bakery trade — devoted part of its first meeting to wage fixation. Delegates 
of employers and operatives, present in equal numbers, "dealt with the national demand 
for a 60s. minimum and a 40 hours week for bakers and confectioners, a pro rata advance 
to all grades, and corresponding advances to allied workers, including women. The council 
unanimously fixed a minimum of 55s. for rural districts and 60s. for industrial disl 

It was further resolved that the Government ought to consult with the council before tak g 
any steps with regard to establishing national bakeries." — London Times. September 1°. 1918. 

41 



(Hi) The settlement of the general principles governing the 
conditions of employment, including the methods of fixing, paying, 
and readjusting wages, having regard to the need for securing to 
the workpeople a share in the increased prosperity of the industry. 

(iv) The establishment of regular methods of negotiation for 
issues arising between employers and work people, with a view 
both to the prevention of differences, and to their better adjust- 
ment when they appear. 

(v) Means of ensuring to the work people the greatest pos- 
sible security of earnings and employment, without undue restric- 
tion upon change of occupation or employer. 

(vi) Methods of fixing and adjusting earnings, piece-work 
prices, etc., and of dealing with the many difficulties which arise 
with regard to the method and amount of payment apart from the 
fixing of general standard rates, which are already covered by 
paragraph (Hi). 

(mi) Technical education and training. 

(z'iii) Industrial research and the full utilization of its results. 

(ix) The provision of facilities for the full consideration and 
utilization of inventions and improvement designed by work people, 
and for the adequate safeguarding of the rights of the designers 
of such improvements. 

(x) Improvements of processes, machinery, and organization, 
and appropriate questions relating to management and the exam- 
ination of industrial experiments, with special reference to co-oper- 
ation in carrying new ideas into effect and full consideration of the 
work people's point of view in relation to them. 

(xi) Proposed legislation affecting the industry. 
The Committee in this Interim Report makes no attempt to say 
which of these questions should be taken up by works committees. 

The Second Report- — The Committee's Second Report, on joint 
standing industrial councils in less highly organized, or altogether unor- 
ganized industries, is less certain in touch than the Interim Report. 
The Committee, in various places in all its Reports, emphasizes and 
re-emphasizes the point that its plan can be applied only where both 
labor and capital are organized. 

Classification of industries — In this Second Report, the Committee 
classifies industries into three groups, on the basis of the degree of their 
organization : 

Group A. — Consisting of industries in which organization on 
the part of employers and employed is sufficiently developed to 
render their respective associations representative of the great 

42 



majority of those engaged in the industry. These are the industries 
which the Committee had in mind in its Interim Report. 

Group B. — Comprising those industries in which, either as 
regards employers and employed, or both, the degree of organiza- 
tion, though considerable, is less marked than in Group A. 

Group C. — Consisting of industries in which organization is 
so imperfect, either as regards employers or employed, or both,- 
that no associations can be said adequately to represent those 
engaged in the industry. 

The Committee makes essentially the same recommendations for 
industries in Group B that it made in its Interim Report for Group A. 
It suggests, however, that "where in these industries a national indus- 
trial council is formed there should be appointed one or at most two 
official representatives to assist in the institution of the council, and 
continue after its establishment to act in an advisory capacity and serve 
as a link with the Government." It considers furthermore that in the 
case of Group B as of Group A, "the members of the national councils 
and district councils should be representatives of the employers' asso- 
ciations and trade unions concerned." Women should be included in 
the membership. 

As to the industries in Group C, the level of their organization is 
such as to make the scheme proposed for the other group inapplicable. 
Pending the organization of these industries by trade unions and 
employers' associations, the Committee suggests that the trade 
boards organized under the Board of Trade, which were originally 
intended to secure the establishment of a minimum standard of wages 
in certain unorganized industries, should be regarded also as a means 
of supplying a regular machinery for negotiation and decision on cer- 
tain groups of questions dealt with in other circumstances by collective 
bargaining between employers' associations and trade unions. To this 
end, it recommends that the Trade Boards Act be so modified as 
to enable trade boards in these industries to initiate and conduct 
inquiries on all matters affecting the industry concerned. In Group 
C industries, trade boards should be continued or established, and 
"these should, with the approval of the Ministry of Labor, be enabled 
to formulate a scheme for an industrial Council, which might include 
in an advisory capacity the appointed members of the trade board." 
Substantially the same proposal is made for unorganized areas or 
branches of industries in Group A and B. 

Briefly, the proposals are that the extent of state assistance should 
vary inversely with the degree of organization in the industry. 

The Government's demurrer — The Government entered a 
demurrer to the proposals of the Second Report. 1 It would not be 

1 Industrial Councils and Trade Boards: Memorandum by the Minister of Reconstruction 
and the Minister of Labor, June 7, 1918, Cd, 9085. 

43 



desirable for trade boards to undertake the formation of schemes of 
industrial councils, say the Ministers, because the purpose, structure, 
and functions of industrial councils and trade boards are fundamentally 
different. 

The question whether an industrial council should be formed 
for a given industry depends on the degree of organization 
achieved by the employers and workers in the industry, whereas 
the question whether a trade board should be established depends 
primarily on the rates of wages prevailing in the industry or in 
any part of the industry. 

The Government — although in the opinion of some it has not set 
a good example in practice by applying the Whitley recommendations 
to Government departments — stands committed to the policy of the 
introduction of the Whitley plan in all organized industries (Group A) 
and. by implication, to partially organized industries under Group B. 1 

Supplementary Report on Works Committees — To co-operative 
management within the plant the Whitley Committee gives specific 
attention in its third Report, on "Works Committees.''' 2 The purpose 
of such committees is there explained as follows : 

Better relations between employers and their work people can 
best be arrived at by granting to the latter a greater share in the 
consideration of matters with which they are concerned. In every 
industry there are certain questions, such as rates of wages and 
hours of work, which should be settled by district or national 
agreement, and with any matter so settled no works committee 
should be allowed to interfere ; but there are also many questions 
closely affecting daily life and comfort in. and the success of, 
the business, and affecting in no small degree efficiency of work- 
ing, which are peculiar to the individual workshop or factory. 
The purpose of the works committee is to establish and maintain 
a system of co-operation in all these workshop matters. 3 
That there will from time to time arise matters ''which the man- 
agement or the workmen consider to be questions they cannot discuss 
in these joint meetings.*' is recognized by the Committee, but it ''antici- 
pates that nothing but good will come from the friendly statement of 
the reasons why the reservation is made." 4 

Recognition of organized labor — The question of works com- 
mittees in unorganized industries is troublesome. Whether thev are 

1 See section 2 of the "Memorandum." Also letter addressed by the Minister of Labor 
to the Leading Employers' Associations and Trade Unions, October 20, 1917, published in 
Industrial Reports. Xo. 1. 1917. Reprinted in Reports on Reconstruction from English 
Sources, by the Emergency Fleet Corporation, 1918. 

2 Supplementary Report on Works Committees, October, 1917. 

3 Section 2. 
* Section 7. 

+4 



to be recommended, the Committee thinks, is a question which calls for 
very careful examination. 1 

Our proposals as a whole assume the existence of organiza- 
tions of both employers and employed and a frank and full recog- 
nition of such organizations. Works committees established other- 
wise than in accordance with these principles could not be regarded 
as a part of the scheme we have recommended, and might indeed 
be a hindrance to the development of the new relations in industry 
to which we look forward. . . . 

We think it important to state that the success of the works 
committees would be very seriously interfered with if the idea 
existed that such committees were used, or likely to be used, by 
employers in opposition to trade unionism. It is strongly felt that 
the setting up of works committees without the co-operation of 
the trade unions and the employers' associations in the trade or 
branch of trade concerned would stand in the way of the improved 
industrial relationships which in these reports we are endeavoring 
to further. 

In an industry where the work people are unorganized, or only 
very partially organized, there is a danger that works committees 
may be used, or thought to be used, in opposition to trade union- 
ism. It is important that such fears should be guarded against 
in the initiation of any scheme. We look upon successful works 
committees as the broad base of the industrial structure which we 
have recommended, and as the means of enlisting the interest of 
the workers in the success both of the industry to which they are 
attached, and of the workshop or factory where so much of their 
life is spent. These committees should not, in constitution or 
methods of working, discourage trade organizations. 2 

The Report on Conciliation and Arbitration — In January, 1918, the 
Whitley Committee signed its fourth report, on Conciliation and Arbi- 
tration. 3 The report was not published, however, until June 14. It 
was prepared in the belief that some attention should be given "to the 
cases in which the parties may desire voluntarily to refer some differ- 
ence that has arisen to arbitration and conciliation," even where indus- 
trial councils exist. The Committee specifically disclaims any inten- 
tion, however, "to express any views on the extent to which disputes 
can be equitably or satisfactorily settled in this way." 

Compulsory arbitration opposed — -The Committee pronounces 
definitely against any system of compulsory arbitration, on the grounds 

1 Second Report, Section 14. 

2 Supplementary Report on Works Committees, sections 3-5. 

8 Cd. 90 ( )<) (i n substitution of Cd. 9081). This is reprinted in "Reports on Reconstruction 
from English Sources.'* published by the Emergency fleet Corporation, Philadelphia. 

45 



that it is not generally desired by employers and employed, that it has 
not proved a successful method of avoiding strikes during the war, and 
that it would be less likely to be successful in time of peace. It also 
pronounces against any scheme of conciliation which would suspend a 
strike or lock-out pending an inquiry. 

Industrial councils to co-operate with existing conciliation machin- 
ery — It advocates the continuance, however, of the present machinery 
for voluntary conciliation and arbitration, and hopes that the setting- 
up of joint industrial councils (on the lines recommended in the earlier 
reports) will tend to the growth of such machinery. It considers that 
there should be means for holding independent inquiry into the circum- 
stances of a dispute and for making an authoritative pronouncement on 
it without the compulsory power of delaying the strike or lock-out. Its 
main constructive suggestion is that a Standing Arbitration Council 
should be established on the lines of the present temporary Committee 
on Production. To this council disputants would be able voluntarily 
to refer such differences as they themselves cannot settle. 

It is suggested, however, that single arbitrators should be available 
for less important cases, which could be heard locally. It is further 
suggested that the Standing Arbitration Council should take means to 
secure the co-ordination of arbitrators' decisions. The Committee is 
opposed to the enforcement of awards and agreements by means of 
monetary penalties. 

Final Report — On June 14, 1918, the Whitley Committee presented 
its final Report, 1 having come to the conclusion that if it was to under- 
take further inquiries, there would be a considerable amount of over- 
lapping, either with the work that is now being carried on by the 
Central Departments or with the duties and functions of the industrial 
councils. 

The Report does not very much more than summarize the main 
conclusions of the four preceding Reports. It does, however, empha- 
size the urgency of action on the lines of the previous Reports. The 
Committee says that there is pressing need, in every organized indus- 
try, of representative councils, and it looks forward to a continual 
growth of the use of such machinery when its efficacy has been proved 
by experience. 

On the question of the adoption of schemes of profit sharing and 
co-partnership, the Committee says that it has considered the evidence 
at present available, and has felt bound to come to the conclusion that 
it does not justify putting forward any general recommendations. In 
pointing out that the recommendations it has made have the effect of 
conferring upon joint industrial councils and industries a large measure 
of self-government, the Committee adds that many of the subjects 

'Cd. 9153. 

46 



which might perhaps have been suggested as forming objects of inquiry 
by it are matters which can more usefully and profitably be considered 
by joint organizations composed of those actually concerned by various 
trades. 

Five of the members of the Committee — Mr. Clynes, Mr. J. A. 
Hobson, Miss Susan Lawrence, Mr. J. J. Mallon, and Miss Mona 
Wilson — while approving of the general scheme, sign a note attached 
to the Report, which expresses their view that, though the amicable 
relations established between capital and labor by the introduction of 
industrial councils or trade boards are favorable to industrial peace and 
progress, a complete identity of interests cannot be effected and that 
"such machinery cannot be expected to furnish a settlement for the 
more serious conflicts of interests involved in the working of an 
economic system primarily governed and directed by motives of profit." 

3. The Government and the Whitley Recommendations. 

The Interim Report submitted to employers' associations and trade 
unions — The Interim Report reached the Government as a confidential 
document in March, 1917. It met with universal approval and high 
hopes were extended as to the benefits which might result from the 
adoption of a system of national industrial councils and works com- 
mittees which it recommended. It was decided at that time to circulate 
copies of the Report to trade unions and employers' associations 
throughout the country. In July, 1917, this was done, and opinions 
and criticism asked for. 

The circular letter submitting the Report contained a model consti- 
tution 1 for the councils, and a statement outlining the functions which 
it was hoped the councils would fulfill. These are as follows : 

1. To secure the largest possible measure of joint action 
between employers and workpeople for the development of the 
industry as a part of national life and for the improvement of the 
conditions of all engaged in that industry. 

It will be open to the council to take any action that falls 
within the scope of this general definition. Among its more 
specific objects will be the following: 

N. B. — It is not possible and it is not the intention of the 
minister to suggest any hard and fast policy as to what should 
constitute the functions of an industrial council. This is a ques- 
tion which the employers and work people in each industry must 
settle for themselves in their preliminary conferences in the light 
of their special needs and conditions. 

2. Regular consideration of wages, hours, and working 
conditions in the industry as a whole. 

1 This is reprinted in Appendix I. 

47 



N. B. — In some cases a joint industrial council will contain 
representatives of a number of trades which have been accustomed 
in the past to deal with such questions as wages, hours, etc. 
through their already existing organizations. To meet such cases 
the following clause has been inserted in one of the draft constitu- 
tions : "Provided, That where any such matters have in the past 
been dealt with separately by any organization, such matters shall 
not be dealt with by the council as far as that organization is 
concerned without the consent of the representatives of that 
organization/' 

3. The consideration of measures for regularizing production 
and employment. 

4. The consideration of the existing machinery for the settle- 
ment of differences between different parties and sections in the 
industry, and the establishment of machinery for this purpose 
where it does not already exist, with the object of securing the 
speedy settlement of difficulties. 

5. The collection of statistics and information on matters 
appertaining to the industry. 

6. The encouragement of the study of processes and design 
and of research, with a view to perfecting the products of the 
industry. 

7. The provision of facilities for the full consideration and 
utilization of inventions and any improvement in machinery or 
method, and for the adequate safeguarding of the rights of the 
designers of such improvements, and to secure that such improve- 
ment in method or invention shall give to each party an equitable 
share of the benefits financially or otherwise arising therefrom. 

8. Inquiries into special problems of the industry, including 
the comparative study of the organization and methods of the 
industry in this and other countries, and, where desirable, the 
publication of reports. 

9. The improvement of the health conditions obtaining in the 
industry, and the provision of special treatment where necessary 
for workers in the industry. 

10. The supervision of entry into, and training for the indus- 
try, and co-operation with the educational authorities in arranging 
education in all its branches for the industry. 

11. The issue to the press of authoritative statements upon 
matters affecting the industry of general interest to the community. 

12. Representation of the needs and opinions of the industry 
to the Government, government departments, and other authorities. 

48 



13. The consideration of any other matters that may be 
referred to it by the Government or any government department. 

14. The consideration of the proposals for district councils 
and works committees put forward in the Whitley report, having 
regard in each case to any such organizations as may already be 
in existence. 

Note — The following have also been included among the 
functions in some of the provisional constitutions which have been 
brought to the notice of the ministry of labor : 

(i) The consideration of measures for securing the inclusion 
of all employers and work people in their respective associations. 

(ii) The arrangement of lectures and the holding of confer- 
ences on subjects of general interest to the industry. 

(Hi) Co-operation with the joint industrial councils for other 
industries to deal with problems of common interest. 

Meanwhile the arising tide of industrial unrest, which had for 
two years been causing grave concern in England, received further 
official recognition in June, 1917, in Lloyd George's appointment of the 
Commission of Inquiry into Industrial Unrest. The Ministry of Labor 
submitted the Interim Report to the eight industrial unrest sub- 
commissions, who quickly got it before a large number of employers 
and labor officials. Seven of these sub-commissions were emphatically 
in favor of the Whitley proposals. The other did not refer to it. By 
October the replies from the trade unions and employers' associations 
had been received and tabulated. Most of the answers were over- 
whelmingly in favor of the adoption of the principles of the Whitley 
Report. A great majority of the trade unions were in favor of the 
Report, and hardly any were absolutely averse, though several made 
various criticisms or reservations. 

October letter of the Minister of Labor — Backed thus by public 
opinion and the adherence of organized labor and the employers' 
associations, the Government gave instructions to the Minister of 
Labor to take immediate action to carry out the scheme outlined by 
the Report. Mr. George H. Roberts, the Minister of Labor, accord- 
ingly addressed, on October 20, 1917, a letter to the leading employers' 
associations and trade unions explaining the Government's intentions 
and purposes with regard to the formation of industrial councils. 1 

No increase of State control — Mr. Roberts sets at rest certain 
unfounded fears. In the first place, the proposal to set up industrial 
councils does not indicate an intention to introduce an element of State 

1 This letter is reprinted in "Reports on Reconstruction from English Sources.*" United 
Whitley Committee's Fourth Report, on Conciliation and Arbitration. 

49 



interference which has heretofore not existed in industry. The forma- 
tion and constitution of the councils must be principally the work of the 
industries themselves and must depend upon a general agreement 
among the various organizations within the industry and a clearly 
expressed demand for the creation of a council. When formed, the 
councils arc to be independent bodies, electing their own officers, and 
free to determine their own functions and procedure with reference to 
the peculiar needs of each trade. It is Mr. Roberts's opinion that they 
will make possible a larger degree of self-government in industry than 
exists today. 

Rigidity of organization not intended — Secondly, the scheme is not 
intended to be inelastic. "To anyone with a knowledge of the diverse 
kinds of machinery already in operation, and the various geographical 
and industrial conditions which affect different industries., it will be 
obvious that no rigid scheme can be applied to all of them." 

Councils not to usurp functions of employers' associations and 
trade unions — Third, the councils are not intended in any way to dis- 
place existing organizations. On the contrary, "representation on the 
industrial councils is intended to be on the basis of existing organiza- 
tions among employers and workmen concerned in each industry, 
although it will, of course, be open to the council, when formed, to 
grant representation to any new bodies which may come into existence 
and which may be entitled to representation." 

Compulsory arbitration not desired— Tastly. the suggestion that 
the scheme is intended to promote compulsory arbitration is unfounded. 
"Whatever agreements may be made for dealing with disputes must 
be left for the industry itself to form and their efficacy must depend 
upon the voluntary co-operation of the organization concerned in carry- 
ing them out." 1 

Xccd of an industrial board with which the Government may con- 
sult in each industry — Passing to the "reasons which have made the 
Government anxious to see industrial councils established as soon as 
possible in the organized trades;' Mr. Roberts points out the need for 
frequent consultation between the Government and the chosen repre- 
sentatives of both employers and workmen on vital questions concern- 
ing industries. "The Government desires it to be understood," he says, 
"that the councils will be recognized as the official standing consulting 
committee to the Government on all future questions affecting the 
industries which they represent and that they will be the normal chan- 
nel through which the opinion and experience of an industry will be 
sought on all questions with which the industry is concerned. It will 

1 This disavowal of compulsory arbitration is confirmed, as above indicated, in the 
Whitley Committee's Fourth Report, on Conciliation and Arbitration. 

50 



be seen, therefore, that it is intended that industrial councils should 
play a definite and permanent part in the economic life of the coun- 
try." In concluding, Mr. Roberts emphasizes the pressing need for 
the organization of industrial councils in each organized industry at as 
early a date as possible. The motives to this appeal are to be found 
in a desire first to allay industrial unrest during the war, and secondly, 
to be prepared with a machinery which can meet effectively the indus- 
trial problems of the reconstruction era, especially the problem of 
efficiency and ability to meet intense foreign economic competition after 
the war. This urgent need for speedy progress in the movement has 
been again and again emphasized by the Minister of Labor and the 
Minister of Reconstruction. 

4. Progress of the Formation of Industrial Councils 

Actual progress in the formation of joint industrial councils has 
been remarkably rapid, considering the importance of the step. Speak- 
ing before a meeting of the National Union of Journalists on August 
24, 1918, Mr. Roberts announced that up to that time nine councils 
had actually been formed, nineteen were in progress of formation, and 
twenty in other trades were in preliminary stages. 

The industries in which councils had been formed by July include 
the pottery industry, the building industry, heavy chemicals, gold, 
silver and kindred trades, rubber and silk, baking, and furniture. At 
that time progress had been made in the cable-making industry, com- 
mercial road transport, belting, machines, and vehicle building. A 
constitution for the printing industry had been drafted, but not yet sent 
out to the associations concerned for approval. 

In the case of five industries ; namely, bobbin manufacture, boot 
and shoe manufacture, electricity (power and supply), metal engraving; 
and the woolen and worsted industry, conferences had taken place and 
had approved the drafting of a constitution. It is impossible at this 
time and distance to say just how many industries have actually estab- 
lished councils, and copies of their constitutions are not at hand, with 
the exception of that of the council of the pottery industry, which was 
the first formed. 1 This council consists of sixty members equallv rep- 
resentative of employers and operators. Its first meeting was held on 
January 11, 1918, and was attended by the Minister of Labor and 
Minister of Reconstruction. 2 The council is empowered to deal with 
wages and selling basis, regularization of production, improved condi- 
tions of labor, betterment of the health of workers, technical education, 
study of trade union processes, facilities for invention, the collection 
of market statistics and information, and suggestions to local and gov- 
ernmental authorities in the interest of the industry. 

1 For form of Constitution recommended by the Ministry of Labor. See Appendix II. 
'-' See United States Bureau of Labor Statistics, Monthly Review, April. 1918., pp. 234-236, 

51 



Councils for public utility industries — The industrial council idea 
has not only pervaded the field of private industry, but has also found 
entrance into municipal enterprise. Representatives of municipal and 
private water undertakings met in September, 1918, and agreed to form 
a joint industrial council. 1 The principles of the Interim Report have 
been approved by the Association of Municipal Corporations, and the 
establishment of councils is under consideration for the gas, electricity; 
tramways, and non-trading municipal services. 2 

Demand for councils in government departments — There has been 
an insistent, and not illogical demand, also, that the Government indi- 
cate its faith in its own proposals by adopting the Whitley principles 
in the governmental departments. There is indication that the Gov- 
ernment was not unanimous on the matter of establishing Whitley 
councils in the various departments. In December, 1917, Mr. Bonar 
Law, answering a question in the House of Commons, stated that the 
matter was receiving consideration, and that the Government fully 
realized the importance of setting an example. During the discussion 
of the postoffice budget in the House of Commons on June 12, 1918, 
several labor members advocated establishing some kind of joint council 
in that service. Replying to these members, the Assistant Postmaster 
General said that the matter was to come before the cabinet in a very 
short time. It was felt that the movement would receive great impetus 
should the postoffice establish a joint industrial council. The Ministry 
of Labor was inclined to the belief that Government action, as in the 
postoffice case, w T as necessary before full confidence could be estab- 
lished in the trades. The common idea seemed to be that the postoffice 
offered an exceptionally good opportunity to try out the scheme, as, 
generally speaking, the employees are mostly of an educated class some- 
what above the average. 3 

The Government, however, while urging other employers to set up 
joint councils to give workers a part in management, still held off from 
setting the example. In July, 1918, in a Parliamentary debate on sup- 
ply, the Government was pressed to adopt the council system for the 
postoffice. Mr. Bonar Law, again replying to Mr. Roundtree, 
announced that "the War Cabinet has decided to adopt in principle the 
application of the recommendations of the Whitley Report with the 
necessary adaptations to government establishments where the condi- 
tions are sufficiently analogous to those existing in outside industries." 
It had been decided also, he said, that an inter-departmental commit- 
tee, presided over by the Minister of Labor, and composed of repre- 
sentatives of the departments concerned should be set up to consider 
what modifications were necessary. 4 

1 London Times. September 19. 1918. 

2 Round Table, September 18, 1918, p. 823. 

3 United State? Bureau of Labor Statistics, Monthly Labor Review, August, 1918, p. 80. 
* London Times, July 5. 1918. 

52 



Later in July a conference of representatives of all branches of 
civil service was held to demand the application of the Whitley recom- 
mendations to government departments. A resolution asking that a 
national council should be set up to deal with matters common to the 
whole service was adopted. The report of a sub-committee was pre- 
sented, suggesting that the civil service might favorably consider the 
setting up of a national council for the service, with councils in each 
department, and a special sub-committee for the Treasury. A resolu- 
tion expressing regret that the Prime Minister had not acceded to the 
request put forward by the sub-committee was also carried. 1 

The actual procedure worked out in the postoffice and by the 
Admiralty seems to have been far from satisfactory to the public. In 
both departments, schemes were finally set up which were unlike the 
Whitley plan, primarily in that they do not make the trade unions the 
organs of the industrial councils and committees established. Speak- 
ing in Portsmouth at a conference of employers and workmen, Mr. J. J. 
Mallon said that it was profoundly disappointing, after the Government 
had emphatically blessed the Whitley Report, that one of its own 
departments should thus deliberately put it aside. The Admiralty's 
scheme for the setting up of shop committees and a yard committee in 
every royal dockyard and other naval establishments, he said, was 
unlike the Whitley Report in function, constitution, and procedure. 
The Secretary of the National Alliance of Capital and Labor, in a 
letter to the Times, June 21, 1918, expressed the opinion that the fail- 
ure of the Admiralty to recognize the trade unions in connection with 
the scheme they are endeavoring to carry out for the creation of Whit- 
ley committees in the dockyards, and the delay on the part of the 
Postmaster General in applying the Whitley scheme to the great organi- 
zation under his control, are two very disquieting signs to those who 
realize the vital necessity of a genuine reconstructive program. The 
Times itself in an editorial expressed some impatience. Thus the 
slowness and uncertainty manifested by the Government, and especially 
the failure to follow the Whitley recommendations and incorporate the 
trade unions into the plan, called forth not a little adverse criticism. 

It would not be worth while to give thus much attention to the 
question of councils in the government departments did not the criticism 
of the Government's failure to take quick and favorable action indicate 
how ready, and even anxious, the English public is to have the Whitley 
program go through without delay or equivocation. 

5. Criticisms of the Whitley Plan 

Criticisms of the Whitley plan have not been many, nor in any 
case drastically adverse. 

1 London Times, July 29, 1918 

53 



Might mean compulsory arbitration — Mr. H. Luberry, of the 
Fawcett Association, at a meeting of the Trade Union Congress, Sep- 
tember 5, 1917, expressed apprehension of one danger in the Whitley 
councils. Should the workmen's representatives come out of a joint 
council with something which did not satisfy the men, the men's repre- 
sentatives could not, in fairness, countenance the use of the old trade 
union method of the strike. In that way, he thought, the system might 
practically lead to a system of compulsory arbitration. 1 

To this fear the Whitley Committee's Report on Conciliation and 
Arbitration seems sufficient answer. 

The advocates of compulsory arbitration, of a type suggested by 

the Canadian Industrial Disputes Act, are to be sought in other than 

governmental quarters. The Federation of British Industries — an 

organization similar to the Chamber of Commerce of the United 

States — in a pamphlet issued August 3, 1917, 2 is of the opinion that: 

Provision of methods for preventing or settling differences is 

almost as important as provision of facilities for co-operative 

action, and ... if no strike or lockout could take place until the 

question had been submitted to final arbitration by a truly national 

council of employers and employed, there would be good grounds 

for hoping that the time for reflection afforded and the pressure 

of popular opinion would insure the loyal adoption of the award. 

Some fear has been expressed in various quarters, also, that the 
Whitley scheme w T as preparation for the continuation of government 
interference in industry, though it is hard to see how any such fear 
could legitimately be derived from the Committee's reports. Mr. 
Roberts, as we have seen, in his letter of October 20, 1917, formally 
disavowed any such intention. 

Technical experts and office force not represented — Another, 
though minor, criticism is that the scheme of councils and works com- 
mittees does not leave any place in the government of the industry for 
the professional engineers and technical experts, or for office employees. 
Speaking of the council established in the silversmith and allied indus- 
tries, a correspondent in "'Engineer," August 18, 1918, said : 

This council affects one of Sheffield's oldest industries, but 
whilst the employers are represented on it to the extent of seven- 
teen members and the trade unions concerned to the same extent, 
there is not the slightest representation of the higher members of 
the administrative and clerical staffs. I know, as a matter of fact, 
that these men are unrepresented, and as the constitution of all the 
Whitley councils will be virtually identical, there seems to be a 

1 London Times, September 6, 1917. 

-Industrial Councils, Recommendations on the Whitley Report. See United States 
Bureau of Labor Statistics, Monthly Labor Review, October, 1918, pp. 44-47. 

54 



danger of overlooking, throughout the industrial system, a body of 
men occupying important positions who should be assured of rep- 
resentation. In the Sheffield case quoted there is an extensive 
Silversmiths' Staffs Guild. It is not a trade union, but was formed 
for improving the status, knowledge, and usefulness of managers 
and administrative staffs generally. Yet this body was never once 
consulted in any way about the constitution of the joint industrial 
council, in the deliberations of which it will consequently have no 
voice. Its members are, generally speaking, managers — that is, 
they are not employers — but in the event of a strike or of any 
trouble between the employers and employees, they are expected to, 
and of course invariably do, stand loyally by the former. For that 
very reason, whilst they are not employers, but representatives of 
them, they are outside the pale of the trade unions, and under the 
Whitley scheme they appear to be outside the pale of everything. 

Another correspondent in "Engineer' 5 August 30, 1918, attributed 
the exclusion of technical men and office help to ''the strong trade union 
element embodied in the Whitley Committee." It is possible that a real 
weakness in the Whitley plan is here pointed out (though it can hardly 
be said to be due to excessive trade union influence) ; industrial democ- 
racy would demand that all who are concerned in an industry should 
have a voice in its government. 

In giving technical experts and office force representation, how- 
ever, care would have to be taken that the employers did not get double 
representation on the councils. 

The interests of the consumer endangered — Another possible 
objection to the council plan has to do with the relation of the industry 
to the consuming public. Looking ahead, it is possible to see that 
joint councils of employers and employees, if they succeed in reaching 
a common basis of good w'ill and industrial solidarity, might conspire 
to raise profits and wages unduly and charge the bill to the public in 
higher prices. This possibility was evidently in the mind of Dr. 
Addison, Minister of Reconstruction, in remarks made at the first 
meeting of the national council of the pottery industry. While capital 
and labor needed to be organized for mutual protection and develop- 
ment of their industry, he said, they must not be hostile to the public. 
Employers and employed must not be parties to an unholy alliance at 
the expense of the consumer. Such a system could not last. Thev 
wanted the three sections — employer, employed, and the consuming 
public — united in a great bond of understanding and mutual well-being 
that would be promoted by national councils. 1 

There is no need to worry about this point, however, at least until 
experience demonstrates that labor and capital can be so harmonized 

1 London Times, January 12, 1918. 

55 



by joint counselling that they threaten to exercise, together, a monoply 
power. The probabilities are much against any great danger in this 
direction. We must in any case probably come to far greater control 
of prices as a regular thing than we were accustomed to before the 
war. If this regulation is not done on an equitable and reasonable 
basis by the industries themselves, reducing competitive wastes in adver- 
tising, multiplication of styles and patterns, and duplication of effort, it 
will probably be done by governmental action; if the industry itself is 
to regulate prices, rather than leave them to the anarchy of competition, 
it will be better. that labor should have a voice in the matter and that 
the machinery to that end should be developed as quickly as possible. 
Meanwhile we may remember that the government is ever watchfully 
in the background to remind an unfair industry of its sins. 

The National Alliance of Employers and Employed — The critic- 
isms above noted have been only sporadic. An association has recently 
been formed, however, which seems disposed to set up something in 
the nature of an organized opposition to certain features of the Whitley 
plan. This is the National Alliance of Employers and Employed. It 
was established at the end of 1916, "as the result of a movement which 
aimed at securing an improvement in the relations between capital and 
labor." It is thus an unofficial contemporary of the Garton Founda- 
tion and the Whitley Committee. 

A statement of its purposes and activities appeared in the Times, 
November 31, 1917. 

Its constitution provides for the personal and financial support of 
the Alliance to be given by employers' association and trade unions on 
an equal basis. The executive responsibilities of the organization are 
to be equally shared by both sides. Members of the general public 
who sympathize with the objects of the organization may become sub- 
scribing members for a small sum. 

Its principles — The program of the Alliance was drawn up by a 
joint committee of employers and workmen. It pledges the members 
to endeavor to secure improvement in industrial conditions on the fol- 
lowing lines : 

1. A living wage for all workers. 

2. Regulation of the hours of work, especially in arduous 
occupations. 

3. Adequate wages for women, and equal rates with men if work, 
skill, and output are equal. 

4. Improved workshop conditions. 

5. Satisfactory housing accommodation for workers. 

6. Encouragement of workers to take an interest in the efficiency 
and success of the works in which they are employed. 

56 



7. The establishment of joint committees in works to consider the 
interest of the industry. 

8. Maximum output with maximum pay. 

9. Continuity of employment in slack times. 

10. The encouragement of trade unionism and adherence to 
agreements. 

11. The liberal education and technical training of children. 

The basis of equal responsibility and equal administrative authority 
of employers and representatives of labor in any proposal put forward 
by the Alliance and in carrying out its work, is the salient feature of 
the movement. 

The Alliance is the result of the work of a small committee, w T hich 
for some months did not include any employer of labor. In Septem- 
ber, 1916, four well-known employers met four leading trade unionists 
at conferences which led to the production of a scheme unanimously 
adopted when the Alliance was first founded. 

Public conferences and meetings of employers and workmen have 
since been held to consider the desirability of establishing joint com- 
mittees of employers and employed in equal numbers affiliated to the 
Alliance to carry the objects embraced in this scheme into effect. 

Committees have been established in many places. These commit- 
tees are represented in. the Central Council of the Alliance by an 
employer and a workman acting together. The Central Executive 
Committee and the General Committee of the Council, in addition to 
representatives from the districts, have formed committees comprising 
the official representatives of nine trade unions and of the Federation 
of British Industries and Associated Chambers of Commerce of the 
United Kingdom. Prominent members of many other large employers' 
federations are active supporters and executive members of the employ- 
ers' side of the Alliance. It is stated that the movement has received 
the warm support of the rank and file of the workers in all of the 
important industries. 

Points on mJiich the National Alliance criticises the JJliitlcy pro- 
posals — The National Alliance takes issue with the Whitley proposals 
on three main grounds : First, that they are not broad enough in their 
scope, in that they do not provide for a council inclusive of all indus- 
tries in a given district, which would discuss a broader list of matters 
than the Whitley councils will attend to ; second, that the Whitley 
councils will not be able to create the new spirit of good will and 
co-operation needed, but will simply continue on a larger basis the 
conflict-attitude of the hostile camps of labor and capital ; third, that 
the Whitley plan will involve the continuance of state control, which 
should be removed from industry as soon as possible. "After-war 

57 



industry,'' says Mr. A. H. Patterson, Secretary of the Alliance, "must 
have self-government, and the basis of that self-government must and 
can be arrived at by the representatives of employers and employed 
working together with an equality of representation and free from out- 
side interference. There are three parties concerned — capital, labor 
and the community. The role of the State must simply be that of a 
policeman guarding the interests of the community." 1 

The Alliance welcomed the Whitley Report, Air. Patterson con- 
tinues, "as a step (though only a step) in the right direction, but we 
have consistently urged,"' he says, "the inadequacy of those proposals 
in that they are neither wide enough in their scope nor do they suf- 
ficiently realize that industrial reconstruction must be a matter for 
industry itself and not for state departments." 2 

The Alliance's positive program seems admirable, but it is difficult 
to believe that in its cry for laissez faire it is not barking up the wrong 
tree. It is open to question whether there is so great a difference 
between the ideals of the Alliance and those of the W nitley Committee 
as the Alliance thinks. Certainly the implication that the Whitley plan 
means "industrial reconstruction by state departments" is not borne out 
by the Whitley Reports and the statements of the Government. 

The Industrial Reconstruction Council — While the Alliance is cry- 
ing to the Government, "Hands off," another voluntary organization, 
the Industrial Reconstruction Council, is calling on the Government for 
more speed and more activity in bringing employers and employed 
together. 

This organization- had its origin in an important manifesto issued 
on October 10, 1917, called "The Olive Branch to Labor/' bearing the 
signatures of more than forty well-known business men and university 
professors and of a still larger number of officers of trade associations. 3 

Like the Xational Alliance of Employers and Employed, the Indus- 
trial Reconstruction Council preaches the doctrine of self-government 
for industry and the reconstruction of industry by industry itself. 

At present the interest of the Council is centered in the formation 
of joint industrial councils, this being considered the first step toward 
the goal in view. Through literature and newspaper propaganda, lec- 
tures, and other public meetings, it is spreading the gospel of co-opera- 
tive management. Its work has been recognized by the Government 
and it is working in close relation with the various government 
departments. 4 

1 Letter in London Times, October 21, 1918. 

2 See also an interesting exposition of the Alliance's position, by its Trades Union and 
Labor Organizer, Mr. T. Earnest Jackson, in the Spectator, September 28, 1918. 

3 London Times, October 10, 1917. Lor the main content of the "Olive Branch to 
Labor" see Appendix II. 

4 United States Bureau of Labor Statistics, Monthly Labor Review, September, 1918, 
pp. 64-66. 

58 



The Council feared that the opportunity to bring labor and capital 
together was of an evanescent character. In its announcement 
(October 10, 1917) it said: 

The opportunity for the course which we suggest will pass 

with the war, as the relations between the Government and trade 

are then expected to become less intimate. We, therefore, press 

for the acceptance of the following principle : 

That any commercial or industrial matter ought not to 
interest the Government unless it interests both labor and 
capital, and the consequent adoption of the following policy : 

That the Government will undertake to obtain and 
wherever possible accept advice on these matters from bodies 
equally representative of both labor and capital. 

The Federation of British Industries — Another organization which 
has considered the Whitley Report is the Federation of British Indus- 
tries. This body is a powerful combination of employers' associations., 
firms, and individuals. Its membership represents over 9,000 firms in 
every trade and industry, and on its central council are represented 
75 per cent of the important industries of Great Britain, employing 
between three and four million workmen and having a capital of over 
£2,000,000,000. 1 One of the objects of the Federation is stated to be: 
The promotion and encouragement of free and unrestricted 
communication and discussion betw r een masters and workmen with 
a view to the establishment of amicable arrangements and relations 
between masters and workmen, and to the avoidance and settle- 
ment of strikes and all other forms of industrial warfare between 
masters and workmen. 

Like the National Alliance of Employers and Employed, the Fed- 
eration is somewhat skittish in the presence of Government interest in 
industrial organization. While admitting and suggesting "that the Gov- 
ernment ought to go far to recognize, and give an official standing to, 
organizations representative of employers and work people, respect- 
ively, and to encourage the development of such organizations." the 
Federation thinks "it will be readily admitted that the construction of 
an organization on the line suggested is a delicate matter" and "notes 
with satisfaction . . . that it is not contemplated that the Government 
shall actively interfere.'' It holds that it is most important that 
there should be no suggestion whatever of Government pressure 
or coercion and that each particular trade should be free to build up 
its own organization voluntarily and on lines best suited to its peculiar 
needs. 

1 United States Bureau of Labor Statistics. Monthly Labor Review, October, 1918, p. 44. 

59 



Its proposals — The Federation suggests a system of councils dif- 
ferent and somewhat more extensive in scope than those in the Whitley 
Committee's mind, but with less positive aims and functions so far as 
co-operative management between employers and employees is con- 
cerned. It is proposed that the basis of the scheme should be : 

(1) Trade councils of masters and men, that is to say, that each 
trade or section of an industry should form a council representative 
of the employers' organization or organizations, and of the trade union 
or trade unions concerned with such particular trade or section of an 
industry. This council should have the power of dealing with agree- 
ments of all kinds and any other matters appropriate to the particular 
trade or section of industry. 

(2) District councils, if set up, would be of main value in consti- 
tuting "a court of arbitration in the case of any differences between 
employers and employed in the trade in the district, having regard to 
the general and any peculiar conditions obtaining in that district." 
The Federation is opposed to devolving any constructive work upon 
district councils or works committees. 

(3) Above the trade councils it proposes the institution of councils 
of industry consisting of representatives of employers and employed in 
each group of trades forming an industry. (4) Finally, over all-, there 
should be a national industrial council consisting of the representatives 
of the employers and employed in all industries. 

Attitude toward works committees — With regard to the functions 
of works committees the Federation takes a conservative position. In 
the first place, it holds that they should be entirely voluntary in the case 
of each individual firm and not in any way officially constituted — an 
opinion with which no issue need be taken. Secondly, they should 
consist, the Federation holds, entirely of representatives of the 
employees. Apparently the Federation is unwilling to countenance 
the organization of joint works committees. Third, where instituted, 
their duties should be confined to "reporting to, or receiving from, the 
management complaints regarding breaches of any agreements which 
may have been made between the employers and employed." Thus, in 
the Federation's opinion, works committees should be nothing but 
grievance committees ; those positive functions which the Whitley Com- 
mittee, the Ministry of Labor, and employers like Mr. Renold look 
upon as a legitimate, and indeed, the fruitful, field for committee action, 
are apparently either left out of account or regarded with disfavor. 

The tone of the Federation's Report on industrial councils seems 
to indicate that the Federation is not so much interested in positive 
co-operative management as it is in the conciliation and arbitration of 
industrial disputes : 

60 



The councils of industry and the national industrial council 
would provide suitable courts of appeal from the trade councils in 
cases of differences between employers and employed of any trade 
dispute which cannot be settled by the trade council. It is not 
necessary to suggest exact details of procedure, nor is it intended 
to interfere in any way with existing conciliatory boards or other 
arrangements for settling disputes, but rather to build up similar 
organizations in industries where they do not at present exist or 
only to supplement existing organizations. 

In general, the Federation holds that "underlying these suggested 
councils should be the centralization of policy and the decentralization 
of administration." Further.' that consideration of general questions 
should be left to the national industrial council, "which should dele- 
gate to the councils of industry, and possibly to the trade councils, the 
consideration of matters of peculiar trade interest in such cases as the 
national industrial council may think desirable." The final decision of 
all matters of general policy should be taken by the national industrial 
council after providing reasonable opportunities of criticism on the 
part of councils of industry and trade councils. Nothing in this sug- 
gestion, however, is intended to prevent trade councils or councils of 
industry from initiating the consideration of any matter of general 
interest. 

While the pronouncement of the Federation does not show any 
enthusiasm for works committees it is important to note that all the 
proposed councils are composed of representatives of trade unions and 
employers' associations. This is an additional indication that plans for 
the organization of British industry are on a scale, and projected with 
a thoroughness, not possible as yet to contemplate for this country. It 
also indicates that quite as much attention is being given to the organ- 
ization of industry from the top as to the institution of co-operative 
management in individual plants, and that British employers, in an 
organization comparable in its scope and function to the Chamber of 
Commerce of the United States, are not only freely admitting that 
fcabor should have a voice in industrial management, but are laying- 
plans by which that voice may be heard. 

Despite the fact, also, that its own proposals are somewhat differ- 
ent from those of the Whitley Committee, at a meeting held early in 
November, 1918, the Federation unanimously adopted a motion record- 
ing approval of the general principles underlying the Interim Report 
and inviting the group and sub-group committees of the Federation to 
consider how those principles could be adopted in their own industries. 1 

1 Electrician, November 8, 1918, p. 581. 

61 



6. The Government's Purpose. 

There are clear intimations not only in the Whitley Reports them- 
selves, but in the October letter of the Minister of Labor, as well as 
in other official utterances, that the Government had in view no fleeting 
or superficial end in making the proposal for co-operative management; 
and the publications of the various voluntary associations above men- 
tioned indicate that the aims of the Government were also in a general 
way those of the public at large. 

The first purpose is to provide a means of preventing the rise of 
industrial disputes and of settling amicably and without cessation of 
production such disputes as do arise. 

The second is to recognize the right of the worker to a voice in 
industrial government. 

The third desire is to place industries in position where the Gov- 
ernment control which has necessarily developed during the war can 
be withdrawn with safety to all concerned. Far from intending an 
increase in governmental interference, the opposite is the case. Dr. 
Addison, Minister of Reconstruction, in an address before a meeting 
of employers' associations and trade unions in the leather goods indus- 
tries, April, 1918, said that the Ministry wished control to devolve upon 
industry itself. The objects of the Ministry, he said, were directed to 
one end — to promote the restoration of the industry as quickly as pos- 
sible after demobilization. The Government wanted the industry — and 
this may be named as a fourth purpose — to have ready an organization 
of responsible men who could make representations to the Board of 
Trade regarding their industry, and hoped that such an organization 
would be a permanent feature. 1 Speaking before the first meeting of 
the National Council of the Pottery Industry, January 11, 1918, Dr. 
Addison suggested that after the war the question of rationing raw 
material and machinery would arise. This could be more effectively 
done by the industries themselves if fully organized with district and 
national councils than by the government. 2 

But underlying all these desires undoubtedly rests the conviction 
that co-operative management and industrial solidarity are necessary to 
the development and maintenance of the highest degree of industrial 
efficiency, which will be necessary if England is to hold her own in 
post-bellum commercial competition. Sir Albert Stanley, President of 
the Board of Trade, at the meeting of the leather industry above men- 
tioned, said that the experience of the past would be of little advantage 
in facing the conditions of the new world, and there must be an organ- 
ization of industry and trade to deal with problems as they arose. 
However keen competition was before the war, it was nothing 



1 London Times, April 13, 1918. 

2 London Times, January 12, 1918. 



62 



compared with the competition which would arise after it. The Gov- 
ernment was prepared t'o do its share in promoting co-operation, and 
employer and employed must act together, breaking away from the old 
traditions of secrecy and letting the employees understand the problems 
of their trade. If the workers knew what was coming, they would be 
a long way on the road towards the elimination of strikes. If employ- 
ers and employees would form a small committee representative of 
their interests, he would undertake on behalf of the Board of Trade to 
keep that committee fully advised on all matters on which their indus- 
try desired information. Mr. Roberts, at the same meeting, said that 
all plans for the re-establishment of trade would be doomed to failure 
unless they established harmonious relationship between employers and 
employed. The joint industrial councils were necessary not only to 
employers and employed, but to the State. Unless they acted together, 
other people would get the trade which should come to England. 
In the past fiscal and other matters had been made party questions. 
That was entirely wrong, and he could conceive that modifications were 
necessary. When representative trade bodies proved to him* there was 
such a necessity, he cared not for party label or party cries, and would 
say, "Let us serve the interests of our trade, because it represents the 
highest interest of the State as a whole. " 1 

1 London Times, April 13, 1918. 



63 



Chapter IV. Works Committees 



1. Nomenclature 

The terms "works committee"' and ''shop committee'' have been 
used interchangeably and rather loosely. So used, either is applied to 
any committee of workmen or composite committee of representatives 
of workmen and of employers, which deals with works organization, 
processes, and other matters pertaining to the mutual interests of 
employees and employer. The term "shop committee/' however, 
should be applied only to committees representing the men in a given 
shop or department of a plant, e. g., the machine shop, the foundry, 
or the erecting department. Where the men of a given trade in a 
shop or a whole plant organize a committee to look after their par- 
ticular craft interests, such committee should be called a "craft com- 
mittee." The term "works committee'' may be used in both a generic 
and a specific sense; generically, to cover any committee of workmen, 
or of workmen and employers, in a plant ; and specifically, to designate 
the one committee which may be instituted (regardless of whether 
shop and craft committees are in existence) to represent all the shops, 
trades, and interests in the plant. 1 There is also some confusion in the 
use of the term "joint committee." The awards of the Macy Board 
which provide for the establishment of committees call a works com- 
mittee made up of craft committees a "joint shop committee," because 
it represents all the crafts jointly. Another, and better, use of the 
term "joint" confines it to committees upon which both employers and 
employees are represented. This seems to be the ordinary English 
usage. 

2. The Origin and Development of AVorks Committees 

Organized labor — It is evident that the institution of shop or of 
works committees will be easiest where both employers and workmen 
are already accustomed to collective action through trade union organi- 
zation. This fact explains the comparatively large number of works 
committees in English establishments, and their paucity in American 
industry. The English employer has learned to accept and to recog- 
nize organized labor. It is safe to say that, as a result, the relation 

1 What the Shipbuilding Labor Adjustment Board (the "Macy Board") has designated 
as a "joint shop committee,"' the English more properly call a "works committee," in the 
specific sense. See, for illustration, the fifth section of the Macy Board's decision and award 
for the North Atlantic and Hudson River Shipyards, April 6, 1918, and Section IV of 
the Decision as to Wages, Hours and Other Conditions in Atlantic Coast, Gulf, and Great 
Lakes Shipyards, October 1, 1918. The same section is also in the Decision for the Pacific 
Coast Shipyards, same date. 

64 



between the average English corporation and its employees is on the 
whole healthier in tone than is the case in the United States. While 
more radical in its demands, and with greater political adhesion and 
power than American labor, English unionism has been, on the whole, 
more conservative in its methods. Peaceful collective bargaining and 
opportunity for the development of co-operative effort between 
employers and employees are further developed in England than in 
this country. This fact, together with the grave industrial situation 
produced by the war, has played an important part in the development 
of the strong movement, now in full swing, for works committees and 
industrial councils in England. The unions, the employers' associa- 
tions, and the Government, as well as private associations, as we have 
seen, have helped the movement along. 

Works committees have evolved naturally out of certain shop 
practices and organizations of union labor. Committees of workmen 
in the individual trades of a given shop have existed from an early 
date. They have, however, been sporadic, their prevalence fluctuating 
with the changing fortunes of labor in its long struggle to gain legal 
recognition of its right to organize. 1 The earliest instance of "shop" 
and "craft" committees was probably the "chapel," a committee of 
compositors in English printing establishments. References to such 
committees are found as early as 1683 and they were probably in 
existence considerably before that. 2 

Organized labor, since it attained a degree of stability and 
influence, has very generally maintained, both in England and America, 
some sort of arrangement, however informal, by which the interests 
of the men of the same trade on a job, or even of all the men of various 
crafts in a given shop, could be looked after by labor representatives. 
The business agent or "walking delegate" is a universal, if not always 
welcome, official of the local union, employed and paid by its mem- 
bers, to have oversight of their interests in all union plants and 
jobs in the locality, and to protect them from unfair treatment on the 
part either of employers or of other unions. The business agent has 
played a large but not always discreet and honorable part in the annals 
of American trade unionism, and perhaps holds a larger share of 
attention than should be his due, both in the serious literature of trade 
unionism and in a certain class of fiction that has drawn its material 
and its motif from the relations between capital and labor. 

1 See Sidney and Beatrice Webb, History of Trade Unionism. 

2 Works Committee, a Report of an Inquiry by the Ministry of Labor, London. 1918 
(Industrial Reports, No. 2), p. 3. This Report has been drawn upon freelv for information 
concerning the source, the organization, the functions, and the actual operation of works 
committees in England. It will hereafter be referred to simply as "Works Committees." 
Page references are given to the English edition. It has been reprinted in full by the 
Emergency Meet Corporation, Philadelphia, 1919. 

65 



The steward — Below the business agent, and in more intimate con- 
tact with the men and their job, are the craft or shop stewards. The 
steward is himself a workman and gives his time and attention only 
incidentally to the representation of labor's interests. It is his function 
to look after the conditions of work, etc., affecting the men of his 
trade in the shop or on the job (e. g., in the building trades). On the 
one hand, he confers, as the spokesman of the men, with the foreman 
in event of complaint, and on the other, reports to the business agent 
matters which he thinks should have that official's attention. The 
duties of the steward in English shops are briefly described as follows : 
''Apart from (1) functions obviously intended to sustain the fabric 
of the trade union, the collection of dues, the interrogation of defaulters 
and newcomers, and the like, the duties of shop stewards are stated 
in the rules of different unions to include (2) the regular supply to 
the branch or district committee of information respecting any 
encroachment upon recognized trade union conditions, participation in 
deputations to the management in connection with grievances, the 
calling of shop meetings of the members to discuss grievances, etc. 1 
The sending of deputations to the management has naturally led to the 
formation of committees, in which representatives of different trades 
may join. Composite committees of this sort are sometimes suggested 
by the management to avoid the necessity of meeting separately a num- 
ber of craft committees all of whom may be concerned with the same 
matter. In the building trades, loosely organized committees have for 
years existed. It has been common for the craft stewards to come 
together, elect a secretary, and make representations to, or be consulted 
by, the employers, on questions such as the proper distribution of work 
(jurisdiction disputes), the arrangement of the job so that inside opera- 
tions may be reserved for bad weather, and extra payment for work 
done in especially inconvenient situations. Similar combinations of 
shop stewards have been attempted at different times in other indus- 
tries, with varying success. In some cases, notably in engineering and 
shipbuilding establishments, where such practices have been success- 
fully applied, the initiative has come from the management. 2 It is 
obvious, however, that such committees can be classed as works com- 
mittees only as the term is used in a very wide sense. 

In some industries, notably in furniture manufacturing (still speak- 
ing of English conditions) the stewards exercise the function of 
calling shop meetings. These have been in some cases a source of 
works committees in the proper sense of the term. Most English 
unions make provision in their rules for shop meetings, but only mem- 
bers of the union attend. During the war, however, the term "shop 
meeting" has come to have another significance, namely, a meeting of 



1 Works Committees, p. 3. 

2 Works Committees, p. 5. 



66 



all the trades in the plant. The meetings are regular (monthly) and 
the stewards, not necessarily from all the trades, make their report 
about membership and the like. 1 

Piece-rate committees — Works committees appear to have had 
their origin, in certain instances, also, in previously established com- 
mittees for the arrangement of piece-rates. The piece-rate committees 
are craft or shop committees, rather than works committees in the 
specific sense, and are informal in their organization. Such committees 
have long existed in the upholstering and pottery industries. During 
the war, payment by piece-rate has been introduced widely in the 
engineering establishments of England and Scotland. The extension 
of piece-work and the growth of the method of collective bargaining 
in the shop — by works committees or stewards — have gone on side by 
side, and it would appear that to a considerable degree the one is 
the immediate cause of the other. Even where detailed lists of piece- 
work rates are in force, there arise occasions for interpretation which 
may require some sort of committee. In the mining industry, in certain 
districts, the method of joint committees has been in operation a long 
time, along with the Joint District Board. Pit committees are not, 
however, works committees, except in those cases where the enginemen 
and other workers, who commonly belong to other unions, are members 
of the local Miners' Association. 2 

1 For further indication of the functions of stewards, see Appendix III. Agreement 
between the Engineering Employers' Federation and Trade Unions in Great Britain. This 
document throws light on what might become the position and functions of "business agents" 
in this country. 

2 Works Committees, p. 7. Pit committees are also in existence in America. Their duties 
and limitations are illustrated in the following: 

RESOLUTION NUMBER EIGHT 
Settlement of Disputes — Duties and Limitations of Pit Committees 

(a) The duties of the pit committee shall be confined to the adjustment of disputes 
between the pit boss and the miners or mine laborers arising out of this agreement or 
any local agreement made in connection herewith. Where the pit boss and said miners 
or mine laborers have failed to agree, the pit committee and the pit boss are empowered 
to adjust, and in case of their disagreement it shall be referred to the superintendent 
of the company and the president of the local union, or local executive board, of not 
more than five members, either the superintendent or the local president having the right 
to demand the local executive board. The meeting of said board not to be held while 
the mine is in operation; and should they fail to adjust it, it shall be referred in writing 
to the president of the Iowa Coal Operators' Association and the president of District 
No. 13, U. M. W. of A., who may decide the matter either in person or by repre- 
sentatives; their decisions shall be subject to the review and approval of the presidents; 
should the presidents fail to agree, they must either submit the matter to arbitration 
or convene the joint board and submit in writing the question in dispute. 

No case of discharge shall be submitted to the joint board, and in all cases the 
miners or mine laborers and parties involved (except discharged employees), must 
continue at work until a final decision is reached in the manner above set forth. 

(The joint board shall consist of the executive committee of the Iowa Coal Operators' 
Association and the Executive Board of District No. 13, U. M. W. of A.) 

(b) If any employee doing day work shall cease work because of a grievance which 
has not been taken up for adjustment in the manner provided herein, and such action 
shall seem likely to impede the operation of the mine, the pit committee shall assist the 
company in obtaining a man or men to take such vacant place or places at the scale 
rate in order that the mine may continue at work. In case the mine is shut dowV. in 
violation of these agreements, or any of them, the organization will at all times furnish 
all the men required by the operator at the scale rate to properly care for the mine. 

(From agreement between the members of District No. 13, United Mine Workers 
of America, and the members of the Iowa Coal Operators' Association. April 1. 1916. 
to March 21, 1918.) 

67 



It thus appears that whatever the causes of the growth of the 
committee idea in England in the past year or two, the usual founda- 
tion for the actual establishment of works committees has been some 
previously existing committee of shop or craft stewards. It should 
be noted, too, that the loss of the right to strike and the many new 
questions which the war has raised have greatly enhanced the impor- 
tance of the shop steward. Another important basis has been welfare 
committees. 

Even before the war, several large manufacturing firms in Eng- 
land had made progress toward a system of shop and works com- 
mittees. For instance, in the Hans Renold Company, Ltd.. Man- 
chester, an engineering firm employing 1000 men and 1600 women, a 
social union was formed in 1910. This led, in 1915 or 1916, first to 
the formation of a joint welfare committee and then to a committee 
of shop stewards. The Rolls-Royce Company, manufacturing motor 
cars, and employing 4500 men and 1500 women, had a formal organiza- 
tion of shop stewards from about 1912. Barr & Stroud, of Glasgow, 
1250 employees, have had shop committees since 1900, and a joint 
industrial committee since 1916. H. O. Strong & Son, a small engineer- 
ing firm in Bristol, for several years followed the practice, of meet- 
ing all their men once a month to discuss matters connected with the 
establishment which seemed to require examination. At the end of 
1915 this practice was abandoned because the management felt that 
too much time was being wasted in discussion of irrelevant matters 
and that real grievances did not freely come out in the presence of the 
whole body of employees. 1 In place of the monthly meetings a joint 
works committee was, at the management's suggestion, established, 
which the management has found "of the greatest service in conducting 
the business of the works." 2 Guest, Keen and Nettleford, a large 
engineering firm of Birmingham, instituted an appeals committee in 
1914, after a series of strikes of its women employees, and in 1916 
added a Central Control Board of 25 or 30 members. An unnamed 
establishment manufacturing motor cars and aeroplanes instituted a 
works committee, as the result of a strike, in 1908. "The directors had 
had no idea of the trouble, and in order that in the future such a 
position should be made impossible the works committee was formed." 3 

Importance of co-operation on employer's part — A survey of the 
cases in which English firms have established works committees shows 
the importance of co-operation and encouragement -on the part of the 
employer. Indeed, the employer must often take the initiative. While 
English employers, because of the fact that organized labor in England 
is of longer standing and in some respects more conservative than in 

1 Works Committees, pp. 77, 78. 

2 Works Committees, p. 80. 

3 Works Committees, p. 71. The experience and opinions of English firms with regard 
'to Works Committees is given in full in the Report on Works Commi'.tees, pp. 51-142. 

68 



America, have, speaking in general, perhaps had a kindlier feeling for 
trade unions and more cordial relations with them than have American 
employers, it needed the stimulus of the war and the necessity of 
finding basis and incentive for continuous maximum output, to lead 
employers to fuller consideration of the importance of the worker's 
psychology and his desire for a voice in the determination of working 
conditions. It is probable, also, that the workers have been the more 
ready to establish committees because of the grave questions and 
menace to union standards which are involved in dilution and the war- 
time suspension of union rules. The exigencies of war production, 
therefore, have been the chief immediate stimulus to the formation of 
works committees. While, in general, shop stewards, and in some 
cases welfare committees, have formed the nucleus for the develop- 
ment of works committees, the motive for their establishment has come 
from the new problems of industrial organization and control which 
have necessarily arisen from the changed condition of industry in war 
time. Chief among these questions have been dilution, absenteeism, and 
methods of remuneration. 

Dilution — Dilution has at no time in the United States assumed 
proportions comparable with the extent to which it had to be carried 
in England. In England, however, the matter was important and its 
bearing on the need of works committees direct. 

To gain the consent of the National Unions was not in itself 
enough to settle the question of dilution ; for it is obvious that in 
a complicated trade such as engineering, with its many varieties, 
questions of detail might arise in almost every works which needed 
some machinery for their solution. This has led to the introduc- 
tion of dilution committees in many establishments. These com- 
mittees, consisting of the representatives of the workers (mainly, 
of course, the skilled workers) discuss with the management to 
what extent, and under what conditions dilution shall be intro- 
duced. Committees of this character, dealing with an important 
range of economic questions, have often been led to raise other 
questions than that of dilution, and to bring forward for discus- 
sion with the management, with which they are being brought 
into constant contact by the problems of dilution, questions and 
grievances of a general character. Sometimes the committee has 
remained in name a dilution committee, while it was in realitv a 
works committee. Sometimes a definite change has been made. 
and the dilution committee, with more or less change in its com- 
position, has been turned into a works committee. In any case 
the problem of dilution has been one of the most potent forces 
in forwarding the movement toward works committees. Though 
there has been a marked tendency for dilution committees to 

69 



develop into works committees, it may be noted that in one or two 

cases the dilution committee has been formed after, and is a 

sub-committee of the works committee. 1 

A very important stimulus to the formation of works committees 
has been afforded by the Reports of the Whitley Committee, especially 
the Interim Report on Joint Standing Industrial Councils, and the 
Supplementary Report on Works Committees, and by the Ministry of 
Labor's Inquiry on Works Committees (Industrial Report No. 2). 
Before these, the Report of the Garton Foundation doubtless had very 
considerable influence. 

Non-union collective bargaining — In the United States we find 
no such consistent record. Even before the new problems occasioned 
by the war, however, and before the English movement began to attract 
attention in this country, the existence of welfare departments and 
industrial betterment schemes in some American establishments, 
together with the advent of the employment manager with his wider 
human understanding of the tasks involved in maintaining a competent 
working force, had led here and there to the establishment of shop, 
or even of works committees. Here, also, as in England, where 
organized labor was recognized, the union "shop committee" was not 
uncommon, but as a rule it did not mean that the men had any essential 
part or "co-operation" in management. In other cases, some of them 
very recent, more or less formal and involved plans have been promul- 
gated by large corporations, with the evident purpose of dealing col- 
lectively with their own employees but not with organized labor at 
large. These have been called, not inaptly, "non-union collective 
bargaining" schemes. 2 

3. Functions 

Demarcation of function between works committees and district 
councils — In the Introduction it was stated that the functions of works 
committees include not only the consideration of grievances but also 
problems of works organization, production methods, shop rules and 
regulations, "and, in short, all matters which affect the welfare and 
spirit of the workers and the tone of the relations between them and 
their employers." Certain phases of the various functions which the 
Whitley Committee names as within the scope of co-operative manage- 
ment would fall to the works committees rather than to national or 
district councils. A line of demarcation must be drawn between the 

1 Works Committees, pp. 10, 11. 

2 See "Non-union Collective Bargaining Plan," by Boris Emmet, United States Bureau 
of Labor Statistics, Monthly Labor Review, August, 1918, pp. 180-184. This is reprinted 
in Appendix IV. Full discussion of works committees in the United States will be found 
in Chapter V and in Appendix V. 

70 



functions of works committees on the one hand, and national or dis- 
trict councils on the other — or, in this country, between district con- 
ferences of unions and employers' associations. Generally speaking, 
district councils or conferences are for the purpose of fixing conditions 
as to wages, hours, etc., in a whole district for a stated period. Where 
there are such councils or conferences, works committees can consider 
such matters as wage scales and conditions of work as laid down in the 
district agreement only as they apply to a given plant. Any action on 
such matters taken by a works committee must be in accord with the 
district agreement. Settlement of general principles governing employ- 
ment rests with the district or national council or conference. The 
application of these principles lies with the works committee. 
It may include interpretation of piece-rates in special conditions, 
grievances, etc. 

Where a non-union collective bargaining plan is adopted these 
questions of demarcation of function will not arise — so long as the 
plan works, but the company and the employees will perhaps lose 
something in not being a part of the district or national organization 
of their industry. 

Regular methods of negotiation between employers and employees ; 
greater share, on the part of the workers, in the determination of 
working conditions ; the better utilization of the practical knowledge of 
workers ; co-operation in carrying into effect new ideas pertaining to 
machinery, processes, and organization ; co-operation in meeting and 
handling the problems which post-bellum reconstruction will bring on ; 
certain aspects of industrial training and education — in all these 
matters with which co-operative management at large may be con- 
cerned, the works committee will have some share. 

If there is any meaning in industrial democracy the workers will 
certainly desire a voice in the readjustment of wages which must come, 
as well as in the methods by which war industries are to be demobilized 
and returning soldiers reintroduced into industry. Re-arrangements 
of the standard working day, questions of shifts, adaptation of proc- 
esses introduced in wartime through dilution of labor, methods of 
training and questions of apprenticeship, absenteeism, labor turnover, 
etc., are all matters in considering which a well-established joint works 
committee would do good service in the interests of peace and 
efficiency. 

Functions always consultative — No catalogue could include all 
the specific matters which may come up in an industrial establishment. 
The works committee, when once confidence and good will is estab- 
lished, may consider almost anything. It should be clearly understood, 
however, and reasonable employees, as well as employers, will so 
understand it — that the functions of works committees are always 



consultative, and not executive, except as power may be delegated to 
them by the employers. Until the time comes, if it ever does come, 
when the workers own and operate the establishment — out-and-out 
co-operation — the final executive responsibility must rest with the 
employers. Co-operative management is designed on the one hand to 
give the workers delegated responsibility for the administration of 
certain matters as to welfare, etc., and to establish a substitute for the 
old personal contact and acquaintance, now long since lost, between 
employer and employee, and on the other hand, through this contact 
and co-operative consideration of mutual problems to make the task 
of management at once easier, more human, and more likely to secure 
both efficiency and a square deal. 

Functions vary with type of committee — Functions will naturally 
vary with the type of committee, as will also methods of doing business. 
Matters involving wage interpretations, processes, etc., will go to the 
industrial committee, while "works amenities" — welfare, etc. — will go 
to the welfare committee. A joint committee, in either case, can pre- 
sent recommendations directly to the management, or the manage- 
ment's representatives on the committee may have authority to accept 
recommendations on the spot; or again, as appears to be the case in 
certain instances in this country, the committee may be constituted of 
employees and employer's representatives in equal numbers and decide 
issues by majority vote. It is only in rare cases, however, that this 
form of organization and procedure is advisable, and even where the 
constitution of the committee ("board," "council," or whatever it may 
be called) provides for it — thus giving the employees equal power with 
the employers it must not be forgotten that the constitution has at 
some time been "granted" by the employers, and may, in case of neces- 
sity, be taken away. As one employer expresses it, there must be no 
"bunk" in the establishment of co-operative management. A clear 
understanding that in the last resort final acceptance or veto of the 
committee's actions rests with the higher management (and ultimately 
with the directors and the stockholders of the company, will remove any 
danger of "bunk." 

A most suggestive discussion of works committee functions is 
given by Mr. C. G. Renold. 1 After noting that the matters to be 
handled by works committees will best be determined by experience 
and common sense, which will also dictate the distribution of different 
classes of questions among the different committees, Mr. Renold 
divides questions into two main classes, (a) those which are important 
chiefly to the workers, and (b) those on which joint discussion w T ould 

» Industry and Finance, 1917, edited by A. W. Kirkaldy, Ch. IV. 

72 



be primarily advantageous to the management. In the first group he 
places questions involving collective bargaining, as to wages, etc., griev- 
ances, general shop conditions and social organizations. 

(1) Wages — The works committee may insure the application of 
standard rates to individuals, and see that wage scales are fairly 
applied, promises of advancement fulfilled, and apprentices, upon com- 
pleting their time, raised to the standard rate by the customary or 
agreed steps. 1 

(2) Piece-work rates — Here the committee could discuss with the 
management detailed methods of rate fixing as applied to the individual 
jobs or to particular classes of work, as well as investigate, on behalf 
of the workers, complaints of inability to earn the standard rate. It is 
doubtful, however, Mr. Renold thinks, whether the works commit- 
tee, on account of possible cumbersomeness, could ever settle detail in 
these matters. He thinks a better plan would be for a representative 
of the workers, preferably paid by them, to be attached to the rate- 
fixing department of the plant, to check all calculations and to work 
in the employees' interests generally. A possible answer to this is that 
if the records of the rate-fixing department are always open to inspec- 
tion a representative of the employees is not necessary. 

Piece-rate committee — A special rate-fixing and rate-reviewing 
committee may, under certain conditions, be desirable. In such a com- 
mittee may perhaps be found a way of harmonizing the demand of 
trade unions for collective bargaining and the presence of scientific 
management in the plant. 

Two striking examples of rate-fixing committees may be men- 
tioned — one in this country, one in England. The firm of Hart 
SchafTner & Marx, Chicago, lodges the responsibility for making 
piece-rate primarily in its Trade Board. The following description 
of the system is given by Mr. James Mullenbach, Chairman of the 
Trade Board. 2 

Responsibility for making piece-rates is lodged primarily in 
the Trade Board. For expediency the responsibility, however, has 
been turned over by the Trade Board to a Committee, known as 
the Rate Committee, and composed of three members, one repre- 
senting the company, one representing the people, and the chairman 

1 As an illustration of committee function in interpretation of wage awards the following 
from a ruling of the Examiner of the War Labor Board in the case of the Bridgeport 
munition workers may be noted: 

"Questions as to whether the work done by women is the same in kind or quantity as 
that done by men, and questions as to any condition or additions in wage rates to be made 
because of such differences shall be settled by agreement of the management and the shop 
committees" (October 9, 1918). 

2 The Hart SchafTner & Marx Labor Agreement, Chicago (published by the Company), 
1916, pp. 40, 41. 

73 



of the Trade Board. As a matter of practice, the work of rate 
making is carried on almost exclusively by the two members rep- 
resenting the company and the people. While some cases are 
brought before the full committee, these cases are exceptional 
when compared to the number settled by the two members. 

The agreement provides that in fixing rates the Board is 
restricted to the following rules : Changed prices must correspond 
to the changed work and new prices must be based on old prices 
when possible. 

Whenever a question of piece-rate arises, it is taken up in the 
first instance by the two members of the committee and an attempt 
is made to reach an agreement. If an agreement is reached, a 
specification of the work to be performed and the rate to be paid 
is prepared and signed by both representatives without any further 
action. If, however, the two parties are unable to reach an 
agreement, the case is taken up with the full committee and an 
agreement reached, or a decision made fixing the rate and speci- 
fication. If this decision is unsatisfactory to either party, the 
decision may be appealed to the Board of Arbitration. 

New rates are always provisional and temporary and are 
subject to review after sufficient period of trial to determine their 
merit. The Committee seeks to make the temporary rate as nearly 
equitable as possible, both for its effect on the people and to save 
a repetition of the negotiation. 

After the specification and rate have been authorized by the 
Rate Committee, there can be no alteration of the terms either 
by the company or the people without permission from the Rate 
Committee. 1 

The English example is that of the Phoenix Dynamo Company, of 
Bradford, a firm with about 4.000 employees. "One of the greatest 
objections to present piece-work systems," says this company, "is that 
trie employer works out the price in secret, writes down the time on a 
card, and this settles the price.'" The men feel that it is not the 
province of the employer to fix rates in this seemingly arbitrary manner, 
and trouble naturally arises. Hence, the Phoenix Dynamo Company 
established a plan by which a piece-rate committee is appointed ad hoc 
to settle every case in which a piece-rate is questioned by a work- 
man. "If we are unconvinced that the price is unreasonable, and the 
man is equally unconvinced that it is reasonable, he can then say 
'I want this job to go to committee.' " The membership of these com- 
mittees consists of three company representatives, and three work- 
men's representatives consisting of the men concerned and two other 
workmen chosen by him. The Company's own comment upon their 

1 For a iul) statement of the Hart Schaffner & Marx Labor Agreement see Appendix W 
pp. 193-203. 

74 



plan is : "If any employer will put himself in the position of a work- 
man, who, on being offered a price, thinks it unfair, and who has either 
to take it or else put himself in opposition to his foremen and others, 
he will appreciate the value of some such scheme as the above to the 
workman." 1 The Company's full description of their system is given 
in the Ministry of Labor's Inquiry into Works Committee, reprinted 
by the Emergency Fleet Corporation, and will repay careful study. 

It is significant also that the works committee systems recently 
inaugurated by the Bethlehem Steel Corporation 2 and the Bethlehem 
Shipbuilding Corporation plant at Sparrow's Point, Md., both include 
a provision of piece-rate committees. 

(3) Overtime — The question of overtime is inextricably bound up 
with that of the length of the normal working day. The eight-hour 
movement appears to be gaining rapid headway, and to be winning the 
support of employers as well as workmen. The adoption of the 
"basic" eight-hour day, however, does not mean that the actual work 
day is only eight hours in length. It means simply that any time 
worked over eight hours is paid for at the rate of "time-and-a-half" or 
"double time." If the employer can stand the cost, he can, on a basic 
eight-hour day schedule, work his men nine, ten or twelve hours. He 
does this, under present arrangements of management, whenever he 
deems it necessary. The workers have little or nothing to say. If 
they get too much, or in some cases, too little overtime they can leave 
the firm and go elsewhere. It is possible that in the course of the 
evolution of works committee functions, the decision as to the necessity 
for working overtime will not be entirely in the hands of the employer, 
but will be left to a joint committee. 

The opinion of the umpire and the award of the National War 
Labor Board in the case of the Molders vs. Wheeling Mold and 
Foundry Company contain the following provision bearing on 
overtime : 

Joint committee to govern overtime — It has been suggested, 
as some protection against the abuse of constantly exceeding the 
limitation of hours by the employer declaring in his judgment "an 
emergency" to exist, that such extra days should be limited to 
three days in the week. This would only be a very partial remedy, 
for if the employee is over-worked three days in the week his 

1 Works Committees, p. 65. 

2 See War Labor Board, Docket No. 22, Findings in re Machinists. Electrical Workers, 
et al. vs. Bethlehem Steel Company, unanimously approved July 31, 1918: "Any necessary 
revision of piece work rates shall be made by an expert in co-operation with the Ordnance 
Department, the plant management, and a committee from the shops." 

See also the "Bethlehem Plan of Employee Representation, Iron Age, October 24. 1913, 
pp. 1020-1022. Section VI of the Bethlehem plan provides: "After each semi-annual 
election, the representatives shall immediately meet for the purpose of electing a chairman, 
a secretary, a general committee, and committee on rules. 

75 



product will not only fall off during these days, but also during 
the remaining days of the week. A better plan would seem to be 
a provision that the employer shall appoint a standing committee 
of two, and as the burden of establishing an emergency is upon 
those who assert it, the eight-hour limitation should not be 
exceeded unless at least three members of the joint committee of 
four agree that there is an emergency justifying working overtime. 
(Opinion of the Umpire.) 

The question whether or not an emergency exists, together 
with the length of time over which such emergency may extend, 
and the number of extra hours per day, shall be determined by 
agreement between the management and the working molders in 
the shop. 

For the purpose of effectuating the agreement mentioned, a 
permanent committee of four persons is hereby created, two of 
whom shall be designated by the management of the plant and 
two by the working molders in the shop, the assent of at least 
three of whom shall be necessary for permission to work more 
than eight hours in any day of twenty-four hours. 1 (From the 
Award.) 

(4) Grievances — Another group of functions will relate to the 
handling of grievances, such as petty tyranny on the part of foremen, 
too rigid application of rules, alleged mistakes in the payment of 
wages, and wrongful dismissal. The "open door" policy, if by that 
is meant merely the privilege of any individual employee personally 
to take a grievance to the manager, is, as already pointed out,, 
inadequate to serve the requirements of a square deal. The most gen- 
eral, as well as the strongest, motive to the formation of works com- 
mittees seems to be the desire to provide a constitutional and repre- 
sentative method for the presentation and adjustment of grievances. 
Works committees have in a number of cases been set up after strikes 
which were declared out of what seemed a clear sky, the employers,, 
having no adequate means of keeping in touch with the men, being in 
complete ignorance that there was any dissatisfaction. 

It is noticeable, also, that in the more elaborate committee or 
"industrial conference" plans set up by several large American corpora- 
tions, the handling of grievances occupies the chief position in the 
minds of the company officials. This emphasis may be temporary, and 
due to the fact that the works committee idea is in its infancy in this 
country. We may be fairly well assured also that if a committee is 
successful in handling grievances to the general satisfaction, it will 
gradually develop more positive functions, looking toward constructive, 
as well as conservative, co-operation. 

1 Docket No. 37, September 16, 1918. 

76 



Procedure in hearing grievances — The general procedure for the 
hearing and adjustment of grievances will probably be somewhat as 
follows : A workman with a complaint will take it either direct to his 
foreman or to the secretary of his craft or shop committee, who will 
take it up with the foreman. In event the grievance cannot be settled 
in this way, it will be referred to the shop or craft committee, or to a 
grievance sub-committee of the same. Thence, the line of appeal lies 
through the works committee to the management and to the trade 
union officials and organizations concerned. 1 

After all it should be remembered that the ultimate function 
of committees is not to settle grievances, but to prevent their 
development. 

(5) Changes of processes, etc. — Other matters of special inter- 
est to workers which should be considered by the industrial (as dis- 
tinct from the welfare) committee, include proposed changes in the 
length of the standard working day, arrangement of shifts and the 
introduction of changes in processes. When such changes are deemed 
necessary by the production manager, the whole situation should be 
placed before a workers' committee, in order that the necessity may 
be understood and full discussion should be allowed, in order that the 
change may be brought about with the least hardship to individuals. 2 
It is worth noting here that this will involve on the part of employers a 
much keener sense of responsibility than they have hitherto shown for 
keeping their men employed, and doubtless some restriction upon the 
hiring and firing privilege. It would also tend to make workmen 
less restnful of technical progress, w T hich causes them temporary 



(6) War and reconstruction problems — Another important func- 
tion of the works committee should be to watch the application of 
special conditions occasioned by the war, for instance, after-the-war 
arrangements, demobilization of war industries, and the introduction 
of returned soldiers into the industrial establishments of the nation. 
The question of training and dilution has been a delicate one in 
England. In this country the conference between the shipbuilders and 
the representatives of shipbuilding labor from the Pacific Coast, held 

1 For England, see Works Committees, pp. 23, 24. 

For provisions in certain American concerns see the plans of the Midvale Steel and 
Ordnance Company, and the Standard Oil Company. Appendix V, pp. 207-212; 220-225. 

These can hardly be said, however, to be representative. The procedure in many newly 
planned and half inchoate works committee schemes is not yet worked out; and in smaller 
concerns is likely to be more informal. Reference should also be made to the provisions 
of the Shipbuilding Labor Adjustment Board. 

2 See below, on production committees, pp. 86-88. 

8 Cf. Mr. Renolds's remarks, in Kirkaldy, Industry and Finance, p. 166. "In this 
connection, employers might well give some general guarantees. For example, that the 
introduction of a new process shall proceed at such a rate as will allow the surplus workers 
to be reabsorbed. If this is too sweeping an undertaking, some kind of 'leaving bonus' might 
be guaranteed, or the union might be reimbursed for any out-of-work benefit paid to men 
for a certain period after their discharge." 

77 



in Philadelphia, August 5 to 10, 1918, brought out the fact that the 
representatives of labor were deeply troubled by the effect which 
dilution and the intensive training of unskilled men to take the place 
of skilled workers might have upon the fate of union standards after 
the war. Whether dilution in this country has assumed large enough 
proportions to have the serious results in the permanent change of 
production methods which it doubtless will have abroad is a question. 
In any case a committee would probably aid in meeting the new 
situation. 

We come now to the group of questions upon which committee 
consideration would prove advantageous to the management as well 
as in the long run to the employees. 

(7) Absenteeism — We may place first in importance questions of 
absenteeism, labor turnover, methods of training, and suggestions on 
organization and methods. We know that absenteeism 1 in American 
manufacturing establishments at the present time is one of the impor- 
tant causes of delayed output. When absenteeism in shipyards runs 
from ten to twenty-five per cent of the number of men who should be 
on the job daily, a condition exists which calls not only for careful 
statistical record and study, but also for energetic remedial measures. 
Absenteeism is a matter dependent largely upon the psychology of the 
worker. That being the case, it should be dealt with, so far as pos- 
sible, by the workers themselves. When a proper sense of community 
of interest is developed, it would seem that the handling of absenteeism 
and tardiness could be facilitated by the organization of a special com- 
mittee or sub-committee on the subject. Present methods of dealing 
with the problem in this country — so far as it is dealt with at all — rest 
mainly on some sort of bonus for good attendance, or on a follow-up 
system by which absentees, or a certain percentage of them, are visited 
in their homes. So far as information is at hand, the committee plan 
has not been tried in the United States. 

In England, committees, whose sole function, or one of whose 
main functions, is the improvement of attendance, have been insti- 
tuted in the mining industry, at the iron works in Cleveland and 
Durham, and in a number of engineering and munition factories. 
Such committees are usually, though not necessarily, joint committees. 
In certain cases, also, they have judicial powers, and thus form an 
exception to the general rule that works committees have only con- 
sultative functions. The pit-head committees have power to fine 
absentees. In certain engineering plants the question of prosecuting 

1 What in America is called absenteeism, the English reports call poor "time-keeping," 
including tardiness in the latter term. 

78 



absentees before the Munitions Tribunal 1 is decided by joint works 
committees. 

In one place a works tribunal has been set up in lieu of the Local 
Munitions Tribunal. The men elect a jury of twelve and a chairman. 
This tribunal has been successful in bringing about a great improve- 
ment in discipline and attendance. It is not a joint committee, being 
composed wholly of workmen. The firm has no status in it, merely 
appearing by its representative as it would in the Local Munitions 
Tribunal. Procedure is quite formal, and the firms' representative is 
expected to address the chairman as "Sir." 2 

The rules governing the joint committees on absenteeism in the 
Northumberland coal mines and in the Cleveland and Durham iron 
works are given in the "Report of an Inquiry into Works Committees." 
(See reprint by the Emergency Fleet Corporation.) 

Committees on lines similar to those in Northumberland have been 
set up in other mining districts. One of the rules of the Northumber- 
land agreement provides means for disciplining officials who may be 
"responsible for the workmen losing work or failing to do their best to 
get work for them." In other localities provision is made for wider 
powers, including facilities for output and suggestion of improvements. 
The colliery committees seem on the whole to have been success- 
ful, although open to criticism and improvement in a number of 
particulars. The committees in the iron works have been more decid- 
edly satisfactory. 

There is a general feeling on the part of work people that if a 

joint committee is to have power to discuss poor attendance and other 

shortcomings of employees it should have the same power to bring to 

attention the faults of the management. The following quotations 

from the opinion of an intelligent miner in the Midlands reflect this 

demand and indicate possible improvements in the committee plan : 

The Joint Committee 3 found out that output was not only 

affected by absenteeism, but by faulty management, and they 

began to frame rules which would embrace the faults of the 

management, as well as the workers' negligence in absenteeism, 

and would call the committees, instead of absentee committees, 

output committees, which gives wider facilities and administration 

in working. 

The meeting of representatives of employers and employed 
soon became lively, and it showed the intense interest that was 
taken in the Government suggestions, and the men soon pointed 
out to the coal owners that there were other causes which caused 

1 Munitions Tribunals were provided for by the Munitions of War Act (July 2, 1915) 
to try offences denned in that act. The tribunal consisted of an impartial chairman, chosen 
by the Minister of Munitions, and assessors representing employers and workmen in equal 
numbers; it had power to levy fines. - 

2 Works Committees, pp. 31, 32. See also Appendix VI. 

3 Sectional joint committees of the miners. 

79 



a reduced output of coal besides absenteeism — the faults of the 
management in allowing the miners to wait for timber, no facilities 
in taking men to their work and bringing them back, the waiting 
for tubs through scarcity and uneven distribution of the same. 
If they were going to work this scheme and draw up rules, they 
must bring the management in as well as the men. 

The coal owners, after consultation, decided to accede to the 
request of the men and asked them to withdraw from this meet- 
ing, take it back to their delegate board and appoint a small com- 
mittee to draw up rules which would give them a voice in the 
management of the collieries concerned. . . . - . 

I will be most frank in what I have to say in this impor- 
tant question. The employing side want no change, as it only 
applies to absenteeism as far as they are concerned. The rules 
give the men a voice in the management, but I am sorry to say 
there is no committee strong enough to administer the rules as it 
relates to management; they go so far, but stop as they see an 
invisible pressure being brought upon them which is going to affect 
the security of their living, a kind of victimization which you 
cannot prove. Your contracting place is finished and you want 
another place, but the management sends you 'odding' — you are 
middle-aged and you cannot keep pace with the younger element, 
and you look after a fresh place, but everywhere is full up, and 
when you come out of the office you can see other men set on. 
This is what is going on all round the district, and you want to 
strengthen these men by having the rules enacted by Act of Parlia- 
ment to make them binding, and if cases like this happen, there 
wants to be a Tribunal appointed by Government, representative 
of all classes, so that a man shall have a fair hearing and equality 
of justice; this will give him a security and it will reduce this 
insecurity of work 

The attitude of the management to committees is fairly good, 
just according to what the business is. If it applies to men they 
are good, but when it applies to the management the feeling 
changes a little, but on the whole, it is good. I don't know of any 
decisions they have not carried out, but it takes them a long time 
to do it ; when they promise, your tenacity has to be great. 

As far as colliery workers are concerned, separate committees 
are not needed, as they would deal with all questions that could 
arise ; what would be essential would be to see that all grades are 
represented on the committee. 1 

Even if a special committee is not created, the regular works com- 
mittee, or the shop committees, may do much to decrease absence and 

1 Works Committees, pp. 118-122. 

80 



tardiness. An English motor car and aeroplane establishment reports 
the following results: 

The Committee has been largely responsible for making the 
appeal for better timekeeping effective, and this is the more 
remarkable, because even before the appeal was made the time- 
keeping record was considered very good. As an illustration, the 
following figures were given: For the week ending 10-3-17 the 
total number of hours lost by 3,300 employees was 8,050; the 
corresponding numbers for 3,500 employees in the week ending 
22-9-17 was 5,700; that is a reduction from 2.4 to 1.6 per head. 
The other questions discussed with the officials of the committee 
and the representatives on it of particular departments have 
included dilution, which was carried through without trouble, and 
grievances in regard to premium bonus times, including the fixing 
of new times when methods of production are altered. Usually 
the arrangement of times is discussed when the question affects a 
number of men. A toolroom bonus, payment of time and an 
eighth, was arranged between the committee's representatives and 
the works manager. This bonus, which was conditional on good 
timekeeping and increased activity, has since been given up in 
favor of individual premium bonus. 1 

(8) Labor turnover— So far as noted, there are no committees 
which directly consider labor turnover. The committee system, if at 
all successful, will tend to reduce turnover by elevating the esprit 
de corps and stabilizing the working force. It may be suggested, also, 
that the employment manager who has developed accurate methods 
of recording labor turnover could secure the interest of the works com- 
mittee and get its co-operation in the task of reducing turnover. 

(9) Technical training — On the question of training, Mr. Renold 
makes the following suggestions with regard to education in shop proc- 
esses and trade technique : 2 

The knowledge of most workers is limited to the process or 
processes on which they are employed, and they would have a 
truer sense of industrial problems if they understood better the 
general technique of the industry in which they are concerned and 
the relation of their particular process to others in the chain of 
manufacture from raw material to finished article. 

It is possible that some of this education should be undertaken 
by technical schools, but their work in this respect can onlv be of a 
general nature, leaving still a field for detailed teaching which 
could only be undertaken in connection with an individual firm or 

1 Works Committees, p. 73. 

2 Kirkaldy, Industry and Finance, 1917, p. 169. 

81 



a small group of similar firms. Such education might well begin 
with the members of the committee of workers,, though, if found 
feasible, it should not stop there, but should be made general for 
the whole works. Any such scheme should be discussed and 
worked out in conjunction with a committee of workers, in order 
to obtain the best from it. 

(10) Business education — It is evident that matters pertaining 
to training and education within the plant itself would not be taken up 
by or with the works committee until it had been firmly established. 
Mr. Renolds, looking far ahead, makes some further suggestions with 
regard to education in general business questions. They are given 
here to indicate how far an intelligent and broad-minded employer 
thinks co-operative management may go in this direction. It is not 
likely that the stage here suggested will soon be reached, except in the 
few cases where some form of co-operative management is already of 
long standing. 

Employers continually complain that the workers do not 
understand the responsibilities and the risks which they, as 
employers, have to carry, and it would seem desirable, therefore, 
to take some steps to enable them to do so. In some directions 
this would be quite feasible, e. g.: 

The reasons should be explained and discussed for the estab- 
lishment of new works departments, or the reorganization of exist- 
ing ones, the relation of the new arrangement to the general manu- 
facturing policy being demonstrated. 

Some kind of simplified works statistics might be laid before 
a committee of workers. For example : 

Output; cost of new equipment installed; cost of tools used 
in given period ; cost of raw material consumed ; number em- 
ployed ; amount of bad work produced ; average wage or earnings 
of various grades or of various departments. 

Reports of activities of other parts of the business might be 
laid before them, 

(1) From the commercial side, showing the difficulties to be 
met, the general attitude of customers to the firm, etc. 

(2) By the chief technical departments, design office, lab- 
oratory, etc., as to the general technical developments or difficul- 
ties that were being dealt with. Much of such work need not be 
kept secret, and would tend to show the workers that other factors 
enter into the production of economic wealth besides manual labor. 

Simple business reports, showing general trade prospects, 
might be presented. These are perhaps most difficult to give in 

82 



any intelligible form, without publishing matter which every man- 
agement would object to showing. Still, the attempt would be 
well worth making, and would show the workers how narrow is 
the margin between financial success and failure on which most 
manufacturing businesses work. Such statistics might, perhaps, 
be expressed not in actual amounts, but as proportions of the 
wages bill for the same period. 1 

(11) Suggestions— One very important function cf works or 
shop committees is the more effective gathering, consideration, and 
utilization of suggestions. 

Naturally, workmen will be quick to make suggestions for the 
improvement of living and working conditions in the plant, providing 
there is an organization which can carry into effect suggestions that 
are deemed practicable. Consideration to such matters may be 
handled in a small plant by the general committee, but in plants of 
larger size a special welfare committee is undoubtedly desirable. 

It is not to be supposed, however, that the employee's instinct of 
self-expression and workmanship is going to be satisfied by the right 
to suggest that the lunch-room screens be repaired, the boiler shop be 
allotted ten more lockers, or the workers in machine shop No. 3 sub- 
scribe to the purchase of a wrist watch for the popular superintendent. 
The purpose of co-operative management, expressed in works commit- 
tees, goes beyond the immediate creature comforts of the workers to 
the industry itself. In however small a way a suggestion adopted may 
lead to improved organization or process, the man who made it, and 
saw it considered by a committee and taken up by the plant manage- 
ment, knows that he has contributed something original and unforced 
to the functioning of the productive organization of which he is a part. 
In a sense, the manual worker has the advantage of the office man in 
that he can see, daily and hourly, the results and the progress of his 
work. It is tangible, visible, growing before his eyes and beneath his 
touch, even though it be but so many dozen pieces clipped off by semi- 
automatic machinery. The office man, on the contrary, has to take the 
results of his labor largely on faith. Both, however, can have and will 
have, a larger and better sense of their own essential human quality — 
in so far as it is not crushed out by deadening and unalleviated routine — 
and of their position as integral units in a productive organization, 
when they find "the men higher up" taking account of their ideas. Nor 
is this true only of employees who offer suggestions that are adopted. 
It is something to have a suggestion even considered. 2 Much good can 

1 Kirkaldy, Industry and Finance, 1917, p. 171. Also in the Survey, Reconstruction 
Series, No. 1, October 5, 1918, p. 5. 

2 "In this connection, as in the quite different field of grievances, it would appear to 
be important that suggestions which look to be worthless should, nevertheless, be con- 
sidered." — Works Committees, p. 35. 

83 



come, in industrial management as elsewhere, from a little tickling of 
the harmless vanity of people. The manual toiler is doubtless not dif- 
ferent from the ordinary run of mortals in his desire for recognition, 
if not distinction. Moreover, when suggestions are rejected too 
swiftly, it is quite possible that some which upon consideration and 
development would prove to be useful may be lost. Farmers gather 
in granges or hang over boundary fences to discuss farm problems, busi- 
ness men make the luncheon hour a time of shop talk, professional men 
hold their periodic scientific and technical meetings. All of these men 
have an intellectual stake in things, which the manual worker lacks. 
The union, on the one hand, if he be a union member, is constantly 
prodding him to guard the interests of organized labor; on the other, 
the manager, the superintendent, and the company magazine con- 
tinually preach to him the duty of working for his employer's inter- 
ests. Nobody speaks of our interest, including in that plural posses- 
sive, the man who figures finances, the machinist manipulating calipers 
at a lathe, and the laborer unloading scrap iron. In general it is the 
function of works committees to popularize the "our' in industry, 
specifically it is the suggestion and production committees which will 
be largely influential to this end. 

Suggestion committees— A committee is a human substitute for a 
box. One American employer, objecting to the committee idea, quotes 
the now well-known aphorism of the tired cabinet member who 
described a board as "long, narrow, and wooden.*' A box is both 
wooden and hollow, which may account for the fact that suggestion 
receptacles, stuck up about the plant, frequently fail to maintain the 
interest of the work people. In the language of the British Ministry 
of Labor, the suggestion box is a "somewhat mechanical and uninspir- 
ing device" and in itself "an inadequate stimulus." Mr. Leslie S. 
Mitchell, Vice-President of the Robert Mitchell Company, Ltd., Mont- 
real, points out, also, that the average workman is not accustomed to 
the use of a pen, and that many times more suggestions will be offered 
orally, where there is proper opportunity, than will be made in writing 
under the most favorable conditions. 

What the Report on Works Committees has to say on this matter 
is so much to the point that it should be quoted at length : 

Where the management gains the confidence of the work- 
people, and has devised methods of considering suggestions which 
appeal to the workpeople, there is a much more powerful response 
than in works where, though there may be a suggestion box, these 
conditions are absent. Many employers and workpeople agree 
that a works committee may not only produce an atmosphere 
necessary to the stimulation of suggestions, but may also help to 

84 



arrange for the proper investigation of proposals made by the 
workpeople. The fundamental matter is that everyone should be 
encouraged to think about the progress and the organization of the 
works. It should be noted that the workpeople very commonly 
complain of the staff's attitude on such matters ; any suggestion, 
they say, is apt to be brushed aside with the remark that they are 
not paid to think, but to work. The obstruction in such cases 
may be a foreman or manager, and even though the higher man- 
agement may be sympathetic, it may never hear of a suggestion. 
His mates also are sometimes not very encouraging to a workman 
with ideas. For lack, therefore, of encouragement, or because of 
actual discouragement ideas of value are held back and the 
capacity for ideas destroyed. 1 

No attempt should be made here to lay down general rules with 
regard to procedure in handling suggestions further than to say that 
matters affecting the whole plant should go to a suggestion commit- 
tee or sub-committee of the general works committee, while matters 
affecting a particular shop should go to the committee of that shop. 

Suggestion committees seem to be rare in American establish- 
ments, and those concerns which have reported shop or works commit- 
tees do not say much about suggestions. 

The Mobile Shipbuilding Company, Mobile, Alabama, has recently 
(October, 1918)) established a suggestion committee of four members 
with the employment manager as chairman. 2 This is in a sense a 
joint committee, the development of which may be watched with inter- 
est since it apparently introduces a new method of valuation of inven- 
tions and suggestion by employees. Usually the employee w T ho has 
anything to offer has to throw himself on the honor of the company 
for whatever payment he may get for his invention. There is no 
doubt that employers have secured suggestions worth many thousands 
of dollars for nothing. 

A Scottish shipbuilding firm has had an ''awards scheme" in opera- 
tion since 1880, which involves a committee consisting of an outside 
and independent person as president, the manager of the yard, and the 
manager or chief draughtsman of the engine works. No workman is a 
member of the committee, but it appears to give satisfaction. 

1 Works Committees, p. 35. 

3 The following notice appeared in the Moshico Log, the plant magazine, October 
10, 1918: 

"Boys, the company wants to pay you for suggestions of merit. They invite you 
to criticize the yard. They want you to point out where improvements can be made 
in methods, machinery, safety devices, etc. 

"The following committee has been selected to pass on all suggestions and appraise 
their value. . . . The head of the department affected by any suggestion 
offered will assist in placing a figure on its value Make your sug- 
gestions in writing, sign your name and number, and drop them in the suggestion 
box. If your suggestion is worth $1.00 you will get it: if in the judgment^ of the 
committee it is worth $1000, that amount will be just as cheerfully paid. . . ." 

85 



The rules are elaborate, and designed among other things, to 
do justice as between different claimants. . . • . . In certain 
cases where patents have been secured, the amounts received by 
individuals have run into hundreds of pounds. In the case of 
patents, the inventors usually ask that one of the firm should be 
joined with them, and share partly in the gains. The reply of one 
inventor, when he was asked why this was so, is compounded of 
Scotch caution and good feeling and trust. It was : "Naebody 
kens my name, but a'body kens yours." 1 

(12) Production committees — Allied in function to suggestion 
committees, but with more formal organization and more definite pur- 
pose, are production committees, or, as some prefer to call them, "incen- 
tive and output" committees. The shortcoming of a suggestion com- 
mittee, however active it may be, is that it does not have — -unless it 
becomes a production committee — a definite program and line of attack. 
The functions of a production committee are defined by an American 
expert as follows : 

(a) To study in detail the operations performed in the differ- 
ent crafts and callings of the industry and to determine if better 
methods can be found in performing operations that will increase 
production and maintain quality, eliminate operations, and make 
the work more interesting to the worker. 

(b) To study in detail the method of handling materials to 
and from operators w T ith a view to working out improvements. 

(c) To study the methods of providing workmen with tools 
and supplies. 

This definition is from the point of view of a scientific manage- 
ment which recognizes the value of human touch and the workman's 
co-operation. It is too narrow, however. The production committee 
should have wide freedom to consider any matter of technique and 
plant organization, from the proper motions of a workmen in a given 
task to the wholesale transformation of the equipment and methods of 
a department. 

The pit-head committees in English coal fields are in part pro- 
duction committees, but hardly in the sense just indicated. Scattered 
through reports and letters from English and American firms there are 
to be found suggestions which indicate that the production committee 
idea is beginning to receive attention in practice. In most cases, how- 
ever, experiment has gone no further than the formation of foremen's 
committees. 

1 Works Commiltees, p. 96. 

86 



A well organized production committee will have the following 
membership : 

An expert production engineer who understands men as well 
as processes. 

A representative of the management. 

One or more representatives of the employees. 

The personnel of the committee may be changed for different 
shops, or there may be a separate committee for each shop. It is an 
open question whether foremen should be represented on the pro- 
duction committee ; certainly not to the exclusion of representatives of 
the men. It must frankly be admitted that production committees are 
experimental. They may work and they may not. Under men with 
the human and co-operative point of view, they would afford one more 
avenue for cordial and constructive relations between managers and 
men. Especially would they fulfill a need the significance of which 
scientific management has never grasped. They would give to the 
workmen a voice not only in the general conditions of employment, 
but something to say with regard to the standardization of practice, 
and the economics and equities involved, for the employees as well as 
the employer, in change of method or machinery. In other words, they 
would be a recognition that the laborer has a specific stake in the plant, 
not to be pulled up or shifted without consulting him. Under present 
conditions, the production expert, whether stop-watch man or not, has 
to make his observations and decisions, often with the direct hostility 
of men, not seldom in the midst of their attempts to deceive him, and 
generally without their wholehearted, honest co-operation. It is inter- 
esting to note in this connection that candid experts agree that most 
existing piece-rate scales are worthless, from the point of view of fair- 
ness, because they are drawn up in the absence of standardized prac- 
tice in technical processes and without the real advice and co-operation 
of the workers themselves. The scientific manager and production 
engineer now pit their wits against the men. Any organization which 
will enable them to pull together with the men will be a desirable step 
in advance. 1 That the idea of production committees has occurred to 
representatives of both labor and capital, and that it bears promise of 
affording an additional avenue — beyond that of the general works 
committee to co-operative management, good will, and productive 

1 "In any case of new rules or new developments, or new workshop policy, there is 
always the greatest difficulty in getting the rank and file to understand what the management 
is 'getting at.' However well-meaning the change may be as regards the workers, the mere 
fact that it is new and not understood is likely to lead to opposition. If the best use is 
made of committees of workers, such changes, new developments, etc., would have been 
discussed and explained to them, and it is not too much to expect that the members of such 
committees would eventually spread a more correct and sympathetic interpretation of the 
management's intentions among their fellow-workers than they could get in any other way." — 
Kirkaldy, Industry and Finance, pp. 168, 169. 

87 



efficiency, is suggested by the following extracts. The first is from a 
shipyard worker and bears both on production committees and sug- 
gestion committees : 

The suggestion that I would like to make is that a representa- 
tive be appointed for each large plant whose duty it should be to 
gather suggestions from each and every skilled worker as to short 
cuts and improvements in method and design. Why standardize 
old fogey notions and methods; because "it" was always done in 
the past is no good reason why we should continue to do "it." 

Feeble efforts have been made to get suggestions from the 
workers, but they have been too feeble and were along lines that 
tended to create distrust ; for when they were put to use someone 
was deprived of employment or no real credit was given. 

My way of thinking is that the person appointed must work 
right along with us, a councilor, an adviser, one who is thoroughly 
sympathetic with our efforts for real democracy. It is my honest 
belief that with such a person on the job jurisdictional squabbles 
and trade prejudices would largely disappear. 

The second is from a circular letter sent out by Committee on 
Industrial Relations, Chamber of Commerce of the United States, 
August 24, 1918: 

There is enough experience available to prove that the average 
production manager is not qualified by reason of his responsibili- 
ties and training for labor management under present, and, particu- 
larly, under future labor conditions as they are foreseen by the 
keenest visioned men. The ambitious schemes of the "live-wire" 
sales manager, splendid in themselves, must be subjected to the 
"wet-blanket" scrutiny of the credit man or the finance commit- 
tee; just so, the production manager cannot safely be permitted 
to speed up his processes and cut his costs regardless of the effect 
of his activities upon the employees whose interests are concerned, 
but should submit his plans for criticism and revision to a labor 
manager, co-ordinate with him in authority. 

The essential point, however, is that there should be people 
thinking about industry from the standpoint of the interests of the 
workers — people in the management of individual concerns, in 
industrial associations, in Chambers of Commerce, and in Wash- 
ington. Such thinking will correct many evils in industrial rela- 
tions at the source, will inform the ignorant, curb the unscrupulous 
and fasten responsibility upon the careless or reckless employer. 
After all, industry exists for the benefit of the people and not the 
people for the benefit of industry. 



(13) Promotion — Mr. Renold does not deem it beyond the range 
of probability that the works committee should have some voice in the 
selection and promotion of shop officials, especially leading men, sub- 
foremen, and foremen. It is, he says, "quite certain that it is well 
worth while making some attempt to secure popular understanding and 
approval of many of the appointments made." It would at least be 
possible to explain why a particular choice was made, and the jealousies 
always involved in promotions could be softened if the management 
would make t.o the committee a statement indicating the qualities 
desired in the position. "It should at least be possible," says Mr. 
Renold, to discuss a vacancy occurring in any grade with all the others 
in that grade. For example, to discuss with all shop foremen the pos- 
sible candidates to fill a vacancy among foremen. 1 This is probably 
better than no discussion at all, and the foremen might be expected, to 
some extent, to reflect the feeling among their men. Here again the 
establishing of any such scheme might well be discussed with the com- 
mittee of workers." 2 

Opinions on this question are summarized in the Ministry of 
Labor's Report on Works Committees as follows : 

The appointment of foremen is a question on which there may 
be said to be three groups of opinions. Many employers hold that 
it is purely a management question. The opposite extreme to this 
is the claim made by a considerable section of trade unionists that 
the workmen should choose their own foremen. A position inter- 
mediate to these two extremes is taken up by a certain number of 
employers and by a section of workpeople ; the appointment (they 
feel) should be made by the management, but it should be sub- 
mitted to the works committee before it becomes effective. Even 
this intermediate position, however, is not really a common posi- 
tion; there are differences of opinion as to the conditions under 
which the appointment should come before the works committee — 
that is to say, whether or no the works committee should have 
power to veto the appointment. Those employers who are pre- 
pared to submit such appointments to a works committee are for 
the most part of the opinion that this should only be done in order 
to explain the reasons for their choice. This, they hold, will tend 
to remove obstacles which might otherwise be put in the way of 
the appointment. A considerable body of workpeople, on the 
other hand, hold an intermediate position which comes nearer to 
election of foremen by the workpeople ; they think that the works 
committee should have the right to veto the choice made by the 
management A few employers consider that this — or even direct 

1 This is one function a foremen's committee could fulfill. 

2 Kirkaldy, Industry and Finance, pp. 170, 171. 

89 



election — may be possible when a works committee, through the 
experience gained in consultations about such appointments, has 
learned to estimate all the qualities necessary in a foreman. It 
has already been mentioned that works committees very often dis- 
cuss the conduct of foremen. The conclusion then reached, that 
such discussion was a desirable function for a committee, would 
appear to involve as a corollary that of consultation about appoint- 
ments. This latter function would tend to remove the necessity 
for the former. 1 

At least one American firm is definitely working on this question. 
This is the Sunville Baking Company, Pueblo, Colorado. 2 

Welfare committees — Nothing has been said in the foregoing pages 
about the functions of welfare or "works amenities" committees. It is 
obvious that this field offers wide and attractive opportunities for com- 
mittee action, as do special matters like "safety first," etc. Where the 
employer will not tolerate industrial committees, some form of welfare 
committee is nevertheless sometimes met with. A welfare committee, 
if it functions, is better than none, but it does not in itself reach very 
near to the heart of the problem of co-operative management and good 
will between employer and employee. 

In general summary, it may be said that if the committee plan 
develops and meets, even moderately well, the expectations of its more 
enthusiastic sponsors, there is no matter which may not be taken up in 
a friendly and helpful spirit in joint council. Or if either side cannot 
consent to the discussion of a particular matter, the atmosphere will 
be kept clear by a frank statement of the reasons for not wishing to 
take it up. The principles of fairness and frankness will prevail in 
the committee if they are in the hearts of the men and the 
management. 3 

4. Organization and Procedure 
(a) Problems of Organisation 

Constitutional questions — The first problem is that of the method 
of establishing and perpetuating the committees. Here a number of 
important questions present themselves. ( 1 ) What types of committee 
is it desirable to establish in a given plant? (2) What shall be the 

1 Works Committees, pp. 33, 34. 

2 See Appendix V, p. 225. 

3 The watchword of one American piano company, which has a system of committees, 
is: "If there is no harmony in the shop there will be none in the piano." 

"Quick results are not probable, for it must be recognized that it will take some time 
before the workers generally can be convinced that the management does put all its cards 
on the table in such discussions. A record of straightforwardness must, however, tell in 
the long run, just as even a suspicion of breach of faith or 'slimness' would spoil all chances 
of success. It is important to remember in all such discussions that the management will 
probably possess the most highly trained minds and acutest debating power. It is easy to 
score points, but it only leaves resentment in those scored off, and probably immediately 
raises suspicions of insincerity." — Kirkaldy, Industry and Finance, p. 169. 

90 



relation of the committees to organized labor within the plant? Should 
all employees vote, or should this privelege be restricted to union men 
and committees be based upon the industrial organization of trade 
union representatives? (3) If all employees vote how should constit- 
uencies be arranged— by shops, by departments, by crafts, or by the 
whole of the employees voting as one body? In case only union mem- 
bers vote in what proportion should the various unions be represented ? 
(4) How shall the task of securing representation to both skilled and 
unskilled employees be accomplished? Shall there be one works com- 
mittee representing both classes, or shall there be separate committees 
— one for skilled, the other for unskilled? (b) How shall the com- 
plication resulting from the employment of women be handled? Shall 
women be represented on the committees and have a vote for com- 
mittee members or shall they organize a separate committee to look 
out for their own interests ? 

No general answer possible — In the nature of the case no general 
answer can be given to these questions. Their proper solution w T ill 
depend largely upon the circumstances of the place, the industry, the 
particular plant, and the type of relation existing between employer 
and employee. Illustrations of almost every conceivable arrangement 
can be found in English practice. 1 The movement just starting in the 
United States is adding important variations. 

(1) Types of Committees — In the first place we may distinguish 
between industrial committees and welfare committees, though the two 
functions may be continued in one committee. Secondly, committees- 
are either joint, i. e., composed of representatives of both the men and 
the management, or separate committees of the employees only. 
Thirdly, they may be composed entirely of union representatives, or of 
non-union men, or a mixture of the two. Fourthly, there may be in 
the same plant craft committees, shop committees, and a general works 
committee. Finally special committees for specific purposes may be 
found — dilution committees, suggestion committees, piece-rate com- 
mittees, etc. 

Welfare committees — Welfare committees have been not uncom- 
mon, even before the war, both in England and the United States. 
A survey would probably discover numerous examples in this country 
where the workers have organized social clubs or committees, with or 
without the encouragement and direction of a "welfare manager." 
The autocratic and paternalistic spirit in which employers have some- 
times sought to impose "industrial betterment" schemes upon their 
employees has not, however, tended to encourage the formation or the 

1 See Works Committees, pp. 51-122. 

91 



success of independent welfare committees in this country. As indi- 
cated above, welfare committees have sometimes formed the nucleus 
for the development of industrial works committees. Perhaps the most 
notable instance of the kind in this country is afforded by the interest- 
ing history of the highly successful Filene Co-operative Association 
in Boston. 1 In any case, welfare committees are of comparatively 
slight importance in the face of the grave questions of an economic 
and industrial nature which management, autocratic or co-operative, 
is now called upon to face. "Industrial betterment" plans cannot be 
said to have satisfied the anticipations of the employers who have 
established them, nor to have gained much beyond a grudging and half- 
contemptuous and cynical interest on the part of self-respecting 
employees. Where employers can bring themselves to pay in increased 
wages the sums they would otherwise expend in ostentatious "better- 
ment" and encourage employees to establish and manage their own wel- 
fare work and organization, excellent results are likely to follow, and 
such welfare organization may well afford a natural approach to 
co-operative management, through a general works committee, of the 
industrial relations between employer and employees. 

Industrial committees — Industrial committees will give attention 
to those more serious questions of policy which are likely to produce 
contention, opposition, and perhaps industrial warfare between employ- 
ers and workmen, and to matters which affect the efficiency of the 
plant, economy of production, and progress in organization and 
technique. 

Joint vs. separate committees — Joint committees are as yet com- 
paratively rare. In England, there are some committees of this nature, 
composed of two or three representatives of the management and ten 
or twelve of the workmen. They hold regular meetings, usually at 
longer intervals than one week. When the works committee is a joint 
committee, however, some provision is generally made for separate 
meetings of the workers. This should always be done. Usually, works 
committees are committees of employees only, with regular and con- 
stitutional facilities for consultation with the management, either at 
fixed intervals or whenever occasion arises. Joint committees may 
ultimately come to be the normal form, but a long period of experience 
with works committees will probably precede any widespread establish- 
ment of joint committees. This statement does not apply, however, to 
committees with specialized functions, the number of which, in 
England, is large. 

1 See Appendix V, pp 180-191. 

92 



Both types have their advantages and disadvantages. Probably 
the best plan is to have both types of committees at once. The advan- 
tage of the joint committee is that it affords opportunity for continuous 
contact between the management and the authorized representatives of 
the employees. Its disadvantages lie in the time required, if the man- 
ager or his representatives have to attend frequent meetings in which, 
often, matters which do not need his attention are discussed at length ; 
in the need of the men to consider their problems by themselves (just 
as the management do theirs) ; and in the fact that the men, in the 
earlier stages of the committee plan at least, may not think or talk 
freely in the presence of the representatives of the employer. There 
is some possibility, especially where the relations between employees 
and employers have not been cordial and where confidence and good 
will are not well established, that the employees may be suspicious of a 
joint committee arrangement because of a fear that the management is 
taking this means to spy on the men. In any case facilities for com- 
mittee consultation with the management should be freely and con- 
stitutionally provided for, and the right of appeal to the highest officers 
and even to the directors granted. 

Representatives of the firm should be of high rank — Whether the 
works committee is formally "joint" or whether it or a sub-committee 
merely meets the management on occasion, "it is important that the 
representatives of the firms who meet the committee, or (if it is a 
joint body) sit on the committee, should belong to the highest rank, 
and should include the general works manager (or, if there is one, the 
labor superintendent) and one or more of the directors." x All the 
disadvantages of the joint committee are probably overweighed by the 
essential fact that one of the greatest services the works committee 
can perform is to bring men and management into close contact, and 
give the men an opportunity of discussion with the authorities with 
whom, in its absence, they seldom get into close touch, and then only 
on points of difference. 2 

"Nor is it," says the Minister of Labor, "only the workmen who 
stand to gain if the highest rank of the management is represented. 
Members of the firm who are primarily occupied with finance or 
technique will be brought into contact with those questions of labor 
which are the fundamental problems of industry, and in discussing 

1 Works Committees, p. 25. The Whitley Committee also insists that men of high rank 
in management should attend the joint committee meetings. "We regard the successful 
development and utilization of W'orks Committees in any business on the basis recommended 
in this Report as of equal importance with its commercial and scientific efficiency; and 
we think that in every case one of the partners or directors, or some other responsible 
representative of the management, would be well advised to devote a substantial part of 
his time and thought to the good working and development of such a committee." — Supple- 
mentary Report, Section 8. 

2 Ibid, p. 26. 

93 



these questions with the representatives of the workmen they are likely 
to gain a deeper insight into the best methods of conducting the 
industry." 1 

"The open door' — Emphasis is to be placed on the necessity of 
an open door policy on the part of the management. But the door 
must stand open not only to individuals who have grievances or sug- 
gestions but, to authorized committees or deputations. Many an 
employer prides himself on maintaining an open door policy, who will 
grow red in the face at the thought of "recognizing the union" and who 
utterly refuses to admit to his sanctum any representatives of his own 
employees, whether union or non-union. He expects any man who has 
a grievance to come in person and present it, and he does not clearly 
comprehend the fact that a real open door policy would involve more 
than the presentation and adjudication of "kicks." Much could be said 
with regard to psychology and the open door. It will suffice to point 
out, however, that an individual workman, in greasy overalls, and with 
the eye of his foreman upon him, is not likely to force his way past 
doorkeepers and secretaries into the private office of the manager, 
and confront him across his polished mahogany desk top unless he is 
moved by a burning "grouch." If, however, the manager meets a 
representative committee as a matter of the regular course of events, 
not only will individual grievances get a hearing, but the way will be 
paved for mutually helpful relations. The advantages of the committee 
system do not lie all on one side, by any means. 

(2) Relation to organized labor in the plant — This, together with 
the broader question with regard to the relation of the committee sys- 
tem to organized labor at large, is one of greatest significance to the 
success or failure of the movement for co-operative management in 
this country. In England, as we have seen, the movement has 
developed quite naturally upon the basis of the craft or shop stewards, 
so that the backbone of the committee system there may be said to be 
an already existent trade organization. This is doubtless one considera- 
tion which leads the Whitley Committee to insist throughout that works 
committees, wherever possible, should be based upon union organiza- 
tions. The Whitley Committee does not say, however, that member- 
ship upon, or vote for, works committees shall necessarily be limited to 
union members. 

Composition of committees — In closed shops no question will arise. 
The committees will be out-and-out union committees. In open shops 
there are at least three possibilities. The committees may be composed 
(a) of shop or craft stewards elected by union men only (in which case 

1 Works Committees, p. 26. 

94 



there is no true works committee), (b) of union men elected by vote of 
all employees, non-union as well as union, (c) of both union and non- 
union members. In plants whose management will tolerate the pres- 
ence of no union man, either no question will arise, or the committee 
system will be in a fair way to fail from the start because of the 
absence of a proper sense of freedom and confidence. 

The Ministry of Labor hold that "wherever possible, a committee 
of shop stewards or trade union representatives would appear to be the 
best solution," x but this conclusion applies to English, not to American 
conditions. 

Safeguarding interests of both union and non-union men — Even 
in England, however, the problem of securing harmonious co-operation 
between union and non-union elements is recognized : 

Since, however, the problem from the point of view of well 
organized industries is complicated by the existence of poorly 
organized areas, a proposal under consideration by a firm in which 
considerably less than one-half of the employees are trade union- 
ists may be noted. The proposal is that the works committee 
should be composed of departmental representatives who will 
include the shop stewards, and that from this committee as a 
whole, or from the shop steward and the non-shop steward sec- 
tions of it separately, there should be elected a small number of 
representatives of the workers to sit on a joint committee (of 
employees, not of employees and management). The proposal 
was made as a means of combining (a) the recognition of the 
shop stewards, and (b) the representation of all the work people 
on the joint committee, without duplication of committees for 
different functions. The firm, which recognizes the unions and 
whose conditions are above the district standards, intends that the 
joint committee should deal with a very wide range of subjects, 
only some of which are shop steward questions. 2 

This suggestion offers a feasible, though a somewhat cumbersome, 
method by which the interests of union representatives and of non- 
union employees may both be guarded and at the same time co-opera- 
tion secured. It recognizes the unions but does not give them exclu- 
sive power of representing the interests of the workers. 

A simpler plan, and, where the union will agree to it voluntarily, 
a better one, would seem to be provision for committees elected bv all 
employees, and to which any employee, union or non-union, is eligible 
for membership. This is the plan adopted in this country, in the deci- 
sions of both the Shipbuilding Labor Adjustment Board and the War 



1 Works Committees, p. 18. 

1 Works Committees, pp. 18, 19. 



95 



Labor Board. The unfortunate, though in war time necessary, feature 
of the plans of these Boards, however, is their compulsory, or quasi- 
compulsory, nature. They have been imposed, in more than one 
instance, upon concerns which have had intense opposition to unionism 
and collective bargaining, and in times of accute industrial disturbance 
which threatened the continuity of production of goods vital to the 
prosecution of the war. When it is necessary to specify that the elec- 
tion shall take place in some public building outside the plant, and that 
a Government Examiner shall preside and see that there is fair play, 
too much success or permanency in the committee should not be looked 
for. In these cases the committee plan must be regarded as an emer- 
gency measure only. 1 

The election by the workers of their representative depart- 
ment committee to present grievances and mediate with the com- 
pany shall be held during the life of this award, in some con- 
venient public building in the neighborhood of the plant, to be 
selected by the Examiner of this Board assigned to supervise the 
execution of this award, or in the case of his absence, by some 
impartial person, to be selected by such Examiner. Such Exam- 
iner, or his substitute, shall preside over the first and all subse- 
quent elections during the life of this award, and have the power 
to make the proper regulations to secure absolute fairness. 
The decisions of the Macy Board do not dictate place of election 
but do provide that election shall be by secret ballot. 

Tendency toward election of union men — In plants where organ- 
ized labor is strongly represented the tendency is toward the election 
of representatives who are all union men. This is true in England 2 
and will probably prove to be so in this country because, on the whole, 
the union men take the most interest in those matters which constitute 
the functions of works committees, and also because, no doubt, they 
will see in works committees a new method of collective bargaining — 
a method which, they will feel, the unions should control so far as the 
workers are concerned. If, however, in an open shop, the apathy of 
the non-union employees, or the half-hearted interest of the manage- 
ment, allows the union men to gain complete control, the committee will 

1 The following provision is contained in the awards of the War Labor Board in the 
cases of Smith & Wesson (Docket No. 273), the General Electric Co., Pittsfield Works 
(Docket No. 19), and the Bethlehem Steel Co., Bethlehem Works (Docket No. 22): 

"The election by the workers of their representative department committees to present 
grievances and mediate with the company shall be held during the life of this award 
in some convenient public building in the" neighborhood of the plant, to be selected by 
the Examiner of this Board assigned to supervise the execution of this award, or in 
the case of his absence, by some impartial person, to be selected by such Examiner. 
Such Examiner, or his substitute, shall preside over the first and all subsequent elections 
during the life of this award, and have the power to make the proper regulations to 
secure absolute fairness." 

The decisions of the Macy Board do not dictate place of election, but do provide 
that election shall be by secret ballot. 

2 Works Committees, p. 15. 

96 



not be representative. It will be co-operative and democratic only in 
name, at least so long as the shop remains truly "open." The chief 
problem would seem to be to secure active interest on the part of non- 
union men without at the same time arousing the suspicion of union 
men that the management is using the works committee plan to under- 
mine union influence. This can be done only by an honest and tactful 
management which lays all its cards on the table, lays aside old scores, 
and refrains from any form of secret diplomacy. 

(3) Arrangement of constituencies — Where the committee mem- 
bers are elected directly or indirectly by all the. employees, as they 
should be, the constituencies can be arranged in various ways, chief of 
which are (a) all the employees voting as one constituency, (b) voting 
by shops, (c) voting by crafts. The simplest arrangement, more suit- 
able for small plants is the election of the works committee by all the 
employees voting without regard to craft or shop. In large plants it 
is probably better that each shop, department, or craft, should vote for 
whatever number of representatives it is entitled to have on the works 
committee. Where shop or craft committees, as well as a general 
works committee, are organized, the membership in the general works 
committee may be based upon that of the shop or craft committees. 
Obviously this may be done in a variety of ways. The chairmen of 
the shop or craft committees may constitute, ex officio the works com- 
mittee x (or the employees' representatives on it, if it be a joint com- 
mittee) ; each shop or craft committee may elect its own representa- 
tives, from its own membership to the works committee ; or the gen- 
eral electorate of each craft might elect members to the works com- 
mittee, confining their choice to members of shop or craft committees. 
Only experience can show what method is best adapted to a given 
establishment. The only general rule that may be laid down is that the 
utmost democracy — an unlimited franchise — should mark the election 
of shop and craft committees. It is quite likely that the general works 
committee may best be chosen by the shop or craft committees, though 
it is by no means clear that the chairman of these committees should 
constitute ex officio the works committee. That depends upon how the 
chairmen are chosen. Moreover the tenure of office on departmental 
committees should probably be comparatively short, while that on the 
works committee should be long enough to secure breadth and expe- 
rience in dealing with the larger problems of the works as a whole. 

In a certain measure, organized labor may raise objection to the 
election of committees by departments rather than by crafts. This 
objection will rest on the ground that trade unions are organized on 
craft lines, and that shop or works committees organized on a depart- 
mental basis will confuse matters by cut ting a t right angles to craft 

1 This is the Maey Board plan. See below, p. 118. 

97 



organization. Further, it may be objected that departmental organiza- 
tions is being chosen by the big corporations with the definite intention 
of impairing or excluding union influence. Be this as it may, depart- 
mental organization is not inimical to union power or to union organi- 
zation in the plant, provided the unions have a footing to begin with. 
Some employers opposed to the unions object even to departmental 
committees, on the ground that the union men in a shop take the initia- 
tive in the election of the committee, with the result that all its members 
are union men although a majority of the men in the shop may be 
non-union. 

Election in closed shops — In closed plants or plants in which 
nearly all the employees are union members, the election of committees 
will naturally be on the basis of unions, all the members of a union 
electing a certain number of representatives. In case of large indus- 
trial unions elections may be by branches. In those shops or trades in 
which there are shop or craft stewards — and they are much less prev- 
alent in this country than in England — the stewards will naturally be 
elected to the works committee. It is unnecessary to go into detail for 
the closed shop, however. There the main thing is for the manage- 
ment and the men, already acquainted with methods of organization 
and representation, to get together for the establishment of a joint 
works committee. 

(4) Skilled and unskilled— -The presence of skilled and unskilled 
men in the same plant occasions some problems of representation. In 
England, especially in the large engineering establishments, there are 
in several cases committees of shop stewards — one for skilled men and 
the other for semi-skilled men laborers. Generally, however, one com- 
mittee suffices for both sets of employees. It is interesting to note that 
the works committee in a Midlands munition factory has recently been 
reconstituted. Election by the departments had produced a committee 
made up entirely of skilled trade unionists. While the committee was 
not opposed by the grades of labor not directly represented on it, the 
semi-skilled and unskilled did not show much interest in it. To remedy 
this, a new method of election was instituted, giving separate represen- 
tation to skilled men, semi-skilled and unskilled men, and to women. 
This scheme was advocated and carried through by the secretary of the 
committee, who is himself a union official. 1 

Denial of representation to the unskilled may be a serious cause 
of friction between the different classes of workers, as the presence 
in some plants of separate committees indicates. 

Where there is only one committee, membership is likely to be 
confined to skilled men. This is usually not the result of design but 

1 Works Committee, p. 17. 

98 



of the fact that the majority of men in a shop or department are 
skilled. The objection has been raised that skilled men will not ade- 
quately consider the interests of the unskilled. The Ministry of Labor 
says, however : 

It would nevertheless appear that most committees appointed 
on the department basis do succeed in representing fairly the 
interest of the other constituents, and it is claimed that the com- 
mittee member tends to look upon himself not as a representative 
of a particular craft or section of the department but as a repre- 
sentative of the department as a whole. 1 

In the United States, it is less certain whether skilled labor would 
give due and fair consideration to the interests of unskilled employees. 
The history of organized labor in this country does not give assurance 
on this point. The long continued apathy of trade unions and the 
American Federation of Labor toward the organization and interests 
of the unskilled, together with the slowness with which the principle 
of industrial, as distinguished from trade, unionism gained recognition 
in the minds of organized labor officials — in short the particularism and 
individualism of American trade unionists, may properly cause some 
doubt whether men who have sometimes been more concerned with 
elevating and maintaining standards of wages and conditions for their 
own trade than with improving the lot of the entire working population, 
unskilled as well as skilled, will at once be able, under any sort of com- 
mittee system, to give much consideration to the interests of Dago and 
Hunkie laborers about the plant. 

Foreign-born laborers — We must recognize the fact that the 
American labor class has been cut across by semi-caste lines. The 
♦skilled tradesmen have not only had to carry on the struggle for 
recognition and collective bargaining; they have not only had to meet 
the conditions resulting from the rapid introduction of highly special- 
ized machinery, and latterly of scientific management, but they have 
also, as was not the case with skilled workmen in England, Germany, 
and France, had to protect American standards, as best they might, 
from the terrific and degrading pressure of the immense influx of 
unskilled labor from South and East Europe. When employers, often 
in violation of the contract labor laws, were importing these people and 
regarding them much as cattle, it is not surprising that the skilled labor 
classes came to look upon them with disfavor, and as an unassimilated 
and perhaps unassimilable mass whom it was impossible to take 
into the fold of organized labor. Tn certain industries, however. 
notably mining, conditions compelled the development of industrial 
unionism. In these, little doubt need be entertained that a single works 
committee would adequately represent both skilled and unskilled. 

1 Works Committees, p. 18. 

99 



Negro labor — Another complication in this country, especially in 
the South, results from the presence of negro labor, most of which is 
unskilled. The attitude of trade unionists, both North and South, 
toward the negro has been the reverse of democratic. Nowhere have 
the unions, in practice, whatever lip service they may render to the 
principle of a square deal, given the negro a fair show to improve his 
industrial status. Throughout the South, moreover, the color line runs 
through the center of every industrial establishment. Here it would 
be mere foolishness to expect one committee to represent all. It is 
significant that the shop committees set up in one Southern shipyard 
and regarded by the management as highly successful, as indeed they 
seem to be, do not represent the negroes in any way. Although negroes 
constitute about one-third of the working force of the yard, they have 
neither vote nor representation on the committees. 

It is evident, therefore, that there may be conditions under which 
it is desirable to have separate committees for skilled and unskilled, 
and in the South for negroes and whites, even though such procedure 
is confession of our incapacity at present to develop fully the co-opera- 
tive representation and discussion which are part of the foundation of 
industrial democracy. 

(5) Representation of women workers — In plants where any con- 
siderable numbers of women are employed, this question is likely to 
give trouble. Partly because they perform chiefly unskilled, or at most 
semi-skilled, tasks, and partly because the very great majority of them, 
hitherto at least, have engaged themselves in gainful industrial pur- 
suits only until the door of matrimony opened to them, women have not 
organized for collective bargaining. Moreover they have not been 
freely admitted to the unions nor have the unions as a rule made any 
whole-hearted attempt to establish collective bargaining for them. See- 
ing in the woman — in conjunction with automatic machinery — a cut- 
throat competitor for his job, the union mechanic has taken an attitude 
of hostility to the further entrance of women into industry. In con- 
sequence, the lack of unity of feeling and interest between skilled and 
unskilled has been mirrored in an indifference, to the interests of 
women employees. There have been exceptions to this rule, of course, 
but in general male employees have looked upon women operators, 
where not segregated in "women's" departments, with an indifference, 
if not intolerance, which had the double motivation of the male's tra- 
ditional sense of superiority and his fear (not unfounded) that employ- 
ers would, if permitted, utilize women to break down standards of 
wages and working conditions built up through long and painful 
sacrifice on the part of union labor. 

During the war the unions have patriotically permitted the sus- 
pension of union standards and rules, perhaps to a greater extent in 

100 



England than in this country, but still to a remarkable degree in both. 
They have seen the old skilled trades broken up into many processes 
and, in England particularly, the wholesale introduction of automatic 
machinery, together with the removal of all limitations on output, the 
introduction of bonus schemes, and the like. Dilution of labor has 
been carried out very largely through the induction of women into 
industries where they had obtained no foothold prior to the war. Most 
conspicuous has this revolution been in the metal trades. The British 
Government in its covenant with the trade unions promised, in return 
for the suspension of union standards, that pre-war conditions would 
be restored, in each controlled industry, after the war. Practically 
everyone now recognizes the impossibility, and many the undesirability, 
of making good this promise. In the United States, the chief thing 
the unions have given up during war time is the right to strike, and 
events have shown that the national union officials could not always 
hold the men even to this sacrifice. Nevertheless, in America as in 
England, organized labor has been compelled to stand by while an 
unprecedented influx of women was taking place. Needless to say, 
the settlement of the conditions and standards to exist after the stress 
of war is over, and the women, through whom dilution has been accom- 
plished, continue to lay claim to their jobs, will be a big problem. It 
is not probable that the women will docilely give up their newly gained 
position. 

All this would open up a consideration of the industrial recon- 
struction problem at large; specifically in point here is the function 
which works committees may subserve in helping us toward a solution 
of the new problems resulting^ from the permanent entrance of women 
into trades and industries to which in pre-war days they w T ere strangers. 

Considerations both of justice and expediency would seem to 
counsel both the right of women to vote for committee members, and 
full recognition and representation on the committee itself. If men 
employees object to the autocratic control of industry by employers, 
they cannot consistently withhold the voting and office-holding priv- 
ilege from the women. Moreover, women as competitors for jobs are 
far more dangerous when left to themselves, as a segregated class with 
whom the employer can bargain individually, than they will be when 
recognized by the men as co-workers and admitted into the councils 
of labor. Neither managers nor men can consistently dwell upon the 
beauty and utility of works esprit de corps if a large part of the work- 
ing force, either the women or the unskilled men, is left to one side 
with only indirect representation. Even in such comparatively non- 
contentious matters as welfare arrangements, women employees have 
needs and points of view which cannot, and will not. be given due 
consideration by a committee composed entirely of men. In large 

101 



plants, employing many women, it is entirely possible that the women 
should have special committees of their own, though it can be laid 
down as a general principle of industrial democracy that they should 
have a vote for, and proportionate representation on, the membership 
of the general works committee and upon the committee of all crafts 
and shops in which they are at work in appreciable numbers. 1 

Actual practice in England varies. The Report on Works Com- 
mittees gives detailed account of committees in twenty-three establish- 
ments. Out of the thirteen in this list for which information on the 
matter is given, four give the women neither vote nor representation, 
one gives indirect representation, and eight give women practical 
equality of rights with men. 

(6) Tenure of office of committee members — This runs all the 
way from a month to a year. No general rule can be laid down as to 
what is the best length of service. Two American firms, the Browning 
Company and the White Motor Company, both of Cleveland, have a 
rotary system of membership. In the Browning Company there are 
some new men at every meeting of the committee. In the White Motor 
Company the personnel of the committee changes monthly, but the 
average length of service is six months. 

(7) Other constitutional questions — Supposing it to be settled 
what committees shall be established, who shall vote for them, and who 
is eligible for membership, there remain certain other constitutional 
questions. 

Secret ballot desirable — In general, election should be by secret 
ballot. It is not clear what the English practice is — if there is any 
rule. Six or seven of the firms reporting works committees say mem- 
bers are chosen "by ballot" ; one specifies secret ballot. The Macy 
Board specifies election by secret ballot. The War Labor Board states 
merely that the examiner or his substitute shall ' nave the power to 
make the proper regulations to secure absolute fairness." 

Minority representation — The National War Labor Board, but 
not the Macy Board, has directed, in several of its awards, 2 that "the 
examiner shall provide, wherever practicable, for minority representa- 
tion 3 by limiting the right of each voter to a vote for less than the total 
number of the committee to be selected." This is theoretically a wise 
provision, but in practice has not been found to work well on account 
of the difficulty the men have in understanding it. For this reason 

1 The National War Labor Board, in its instructions to its examiners, says: "Women 
should not be given representation ordinarily by means of separate committees, but by being 
given a definite number of members on the department committees where their numbers 
entitle them to places on the committees.'' 

2 Employees vs. General Electric Co., Pittsfield Works, Docket No. 19. 

3 Employees vs. Smith & Wesson Co., Docket No. 273. See Appendix VII, p. 244. 

102 



minority representation has not been provided for in any recent award. 
Minority representation, arranged in the simplest possible way and not 
adopted until it was thoroughly considered and understood by a works 
committee already organized might prove desirable. It should con- 
tribute to the task of securing fair representation to all interests, and 
might prove to be one method by which the problem produced by the 
presence of both union and non-union men in the same plant could 
be met. In certain American firms the employees elect half the mem- 
bers of the committee and .the management appoints the other half — 
naming non-union men wdien the employees choose union men, and 
vice versa. Some minority representation plan would seem to give 
promise of better results, and would leave the choice of the entire com- 
mittee membership where it should be — in the hands of the employees 
themselves. 

Recall — The Midvale Steel and Ordnance Company's plan pro- 
vides for the recall of committee members by petition of not less than 
two-thirds of the employees concerned. 1 

Officers — Existing works committees, in England, usually have two 
officers, a chairman and a secretary. Their tenure of office is often 
unfixed, although a fixed service with periodical election, not too fre- 
quent, seems desirable. 

Secretary — The position of Secretary is of great importance. A 
good secretary may insure the success of the committee plan, a poor 
one, its temporary failure. A large part of the active work of the 
committee is usually done by the secretary. Difficulties are reported to 
him by the workmen, either directly or through a committee member, 
and he, upon consultation with the committee if the matter be of suf- 
ficient importance, brings the matter before the management. Such 
difficulties may often be settled at once, and their settlement simply 
reported to the works committee. A great deal of work may thus 
devolve on the secretary, as consulting the workmen and interviewing 
the management, and the secretary may thus carry upon his shoulders 
a large amount of current work, rendering it possible for the commit- 
tee as a whole to deal with larger questions. Because of this function 
as a go-between, the secretary should have freedom of movement in 
the different departments of the plant without being required to ask 
the consent of the foremen or the superintendent. The amount of free- 
dom necessary in particular cases, and the members of the committee 
to whom it should be allowed, will vary with the size of the plant and 
other circumstances. The duties of the secretary will interfere some- 
what with his own work as an artisan, and he is hound to lose tine. 

1 See Appendix V, p. 210. 

103 



Pay of the secretary — The question of the secretary's pay is 
important. In some cases he is paid ordinary time wages for the time 
he spends on his duties during working hours ; where piece-rates pre- 
vail he may be paid the average wage of his craft; still another method 
is for his companions to keep his machine running in his absence. 
There is room for argument that the company should pay him full 
wages, but the employees may well object to this, on the ground that it 
would make him more the representative of the employer than of the 
men. In some cases the secretary is paid for his lost time by the 
employees. 

Size of committee — Committees should be large enough to be rep- 
resentative without being unwieldy. On the works committee there 
should be direct representation of each shop or department; this insures 
a fairly large committee. In practice, committees vary in size from 
ten to thirty, and some of the recently established industrial represen- 
tation plans in this country involve still larger committees. It is doubtful 
if real committee work can be done by a body of much over twenty 
members. A committee of ten or twelve will accomplish more real work 
than one of double the size, provided the smaller committee is repre- 
sentative of all interests. Where large committees are necessary there 
should be standing sub-committees for various purposes, and a sub- 
committee of the best men to represent the main committee in special 
conferences with the management. Where the works committee is a 
joint committee, the various shop committees may serve as sub-commit- 
tees of it. 

(B) Procedure. 

Questions of procedure include time and frequency of meetings, 
preparation of agenda, distribution of minutes, provision for ref- 
erenda, etc. 

(1) Time and Frequency of Meetings — It is a question whether 
the committee should hold meetings at stated intervals or only as occa- 
sions may arise. There are arguments for and against either pro- 
cedure. If regular meetings are held, or held too often, ^hey may 
become perfunctory for lack of real business to do. On the other 
hand, they provide a known and regular time for raising questions, and 
they enable questions to come up in their initial stages, whereas if 
meetings are not held until occasions arise, conditions may have grown 
acute before a meeting is held. Finally, by bringing representatives of 
the men and management into constant contact, regular meetings accus- 
tom each side to seeing and acquiring interest in the point of view of 
the other. Employers complain that work people expect all questions 

104 



to be settled off hand and fail to realize that investigation may be 
necessary; this suggests another argument in favor of regular meetings. 
They form also a permanent and business-like substitute for frequent 
sectional deputations. The main thing, however, is that the committee, 
or its delegates, should have access to the management, and if need be 
to the highest officials whenever there is need of it. 

Various plans as to time when meetings are held are followed : 
(a) The meetings are held on company's time and the members 
paid full rates for time thus spent. This plan is most frequent when 
management and men have regular joint meetings, (b) The commit- 
tee meets after working hours. As the works committee, to fulfil its 
purpose, must react to the interest of the whole plant — the employers' as 
well as the employees' — this plan does not seem quite fair nor likely to 
give the best results, (c) Meetings are held partly on company time, 
partly on the time of the men. This plan is workable in practice, pro- 
vided the working day is not too long. Looked at in the broadest and 
best light, the contractual relation between employer and employee is one 
in which the employer purchases service — service of hand and of brain. 
If the works committees are worth while the men who attend their 
meetings and take part in their deliberations are performing a service 
to the employers ; in so far as the committee system is successful it 
will make for the satisfaction and contentment of the employees; 
absenteeism and labor turnover will be reduced, and a community 
spirit built up in which the stop watch and piece bonuses will not be 
necessary to secure a fair, continuous rate of industrial output. The 
services of the committee will thus have a distinct value to the 
employer — a value to some extent measurable in money terms. It 
may, therefore, be argued that all committee meetings should be held 
on company time. In the long run, however, since the committees are 
designed to the mutual benefit of employer and employees, the latter 
may prefer, in self-respect, to donate part of the time spent in meetings. 

(2) Time the management should devote to committees — The 
amount of time the management will need to give to joint conferences 
will vary. One committee in an English establishment, in which the 
relations have always been good, has met the management on an aver- 
age only three times a year in the last twenty-four years, though since 
the war the number of meetings has increased to seven a year. During 
the whole existence of this committee, however, the right of separate 
trade representations to meet the management has been freely used. 
It goes without saying that during the war, and through the even more 
trying period of reconstruction to come, works committees will be 
called upon to spend much more time and thought on questions of 
organization and employment conditions than in settled times of peace. 
It should be evident, also, that those employers and those groups of 

105 



employees who shall have caught the co-operative spirit and prefer to 
solve the questions and differences that arise between capital and labor 
by the fair and square method of open discussion, rather than in the 
old-time coercive and contentious way, will be glad to devote a large 
amount of time and energy to joint conference. 

(3) Place of meeting — The employer should provide a suitable 
place for committee meetings. This does not mean a corner in a 
drafty machine shop, but a comfortable room large enough to seat the 
entire committee. If they can be seated about a large table, so much 
the better. The management should also provide a filing cabinet, a 
typewriter, and when necessary the services of a typist or stenographer. 
In the initial stages of works committees in this country, the question 
of meeting place is likely in some instances to be a bone of contention. 
Some employers will want all meetings held on the plant premises, 
under the eye, so to speak, of the management ; on the other hand some 
uncompromising unionist employees will be zealous to guard the 
influence of their unions and will want meetings held outside, in some 
public hall, perhaps even at the headquarters of the local union. All 
that can be said of such a situation is that it does not argue well for 
the success of the committee. If the men cannot hold their meetings 
in the plant without fear or suspicion of management influence, and 
if the management fears, because of antipathy to union influence to 
have the men hold their meetings wherever they please, a rock of sus- 
picion and contention stands in the way from the outset. The only way 
around it is through a tentative give and take on both sides. Let some 
meetings be held inside the yard, some outside, until it is demonstrated 
beyond a doubt that both sides are playing fair, or that one or the other 
cannot be trusted. 

(4) Procedure in meetings — Xo general rules can be laid down 
on this matter, further than to say that the employees should be left 
to develop their own rules. Where there is an employment manager 
who has the proper confidence of the men he will no doubt be fre- 
quently consulted, but he should be scrupulously careful not to "lead" 
too much. In joint committees a representative of the management 
may preside; in some cases — and this is the better practice — a repre- 
sentative of the management presides at one meeting and a representa- 
tive of the employees at the next. 

Procedure is usually informal. The procedure of joint commit- 
tees is determined by their essential nature and function. The func- 
tions of works committees are practically always consultative. With- 
out the concurrence of the management they can settle nothing. "The 
management has the executive power, and unless the management is 
impressed by the representations of the members of the committee, or 

106 



by the sanction which lies behind them, those representations will not 
lead to executive action." 1 Ordinarily, therefore, the deliberations of 
a joint committee must result in unanimity of opinion on essential 
points, although there are cases in which a majority rule is accepted 
as decisive. Where this is the case, the constitution of the committee 
usually provides that representatives of men and of management shall 
be present in equal numbers. 2 Such provision, however, tends to 
enhance the formality of the whole system, and under too much formal- 
ity, mutual "touch" and confidence are not so likely to be attained. 
The operation of a joint committee is really in the nature of a con- 
sultation between two parties — consultation which, if it results in 
unanimity, results in action, but not otherwise. It is a mistake to think 
too much in terms of voting, or to think that even if there is voting, 
its result is to be a formal decision by a majority vote. What should 
take place is rather discussion by which misunderstanding is removed. 3 

(5) Agenda — In English plants, a list of agenda is circulated in 
order that committee members may know before hand what is to come 
up. Preparation of business for a coming meeting is the function of 
the secretary. 

(6) Minutes — In some plants the minutes of each meeting are 
typed and sent to the various shops. They may be posted on the 
bulletin boards. One American employer objects that the men waste 
too much time about the bulletins when this is done. It may be, how- 
ever, that interest manifested in committee action does not represent 
a real waste of time. 

(7) Referendum — In very important questions the committee 
may decide to submit proposals to all the employees of the shop, or the 
plant, as the case may be. Ordinarily this should be done in writing, 
and time given for calm consideration and decision. Mass meetings 
are impracticable in large plants and should be resorted to sparingly in 
any plant, large or small. Mass meetings, as a method of pure democ- 
racy, too easily become a device of demagoguery, either on the part of 
the management or the men. The good talker always gets a hearing, 
whether his ideas are good or not. 

(8) Relation of the works committee to foremen — The foreman 
occupies a peculiar and difficult position. On the one side he repre- 
sents the management; upon him devolves the duty of getting as much 
as he can out of the workmen. On the other hand, he is not. strictly 
speaking, a part of the management; his interests and tastes are 
ordinarily those of the working class to which, socially, he belongs. 

1 Works Committees, p. 27. 

2 For instance, in the Colorado Fuel and Iron Company Industrial Pain. See Appendix 
V, p. 170. 

8 Works Committees, p. 28. 

107 



His point of view is thus a mixture and a compromise. Some foremen 
attempt to be tyrannical and will decide every doubtful case in favor 
of the employer. Others lead their men by sympathy, tact, and real 
endeavor to give the men as well as the company a square deal. 

Were all foremen of this latter type — properly chosen on the basis 
not only of their technical ability, but of their sympathetic understanding 
and fair-mindedness — there would be little objection to their sitting as 
members of shop and works committees. Unfortunately, however, it 
is not possible to have workmen and foremen so harmoniously related 
that grievances will not arise. Moreover, foremen are likely — being 
only human — to oppose any change of process or organization which 
threatens to encroach upon the powers they have hitherto exercised. 
These considerations led the investigators for the British Ministry of 
Labor to conclude that foremen should not be members of the shop 
or works committees, although separate foremen's committees may be 
recommended. 1 Mr. C. G. Renold advances another objection, based 
upon the extensive experience of his company. In any but very small 
plants, he holds, it would hardly be possible to make all foremen mem- 
bers of the works committee, and for two reasons : First, discussion 
would be less frank if foremen Were present, as they could hardly avoid 
being on the lookout for attacks upon their authority. One of the 
main advantages of a w T orks committee scheme, Mr. Renold further 
holds, is the opportunity for workers occasionally to get past the fore- 
men into direct touch with the higher management. Second, the 
management should be represented, where there are joint committees, 
by the highest active plant officials of the firm, and to include the fore- 
men w^ould make the committee too cumbersome. 2 

It is conceded that it would be unfair, however, to the foremen if 
they were not kept informed with regard to what the committees are 
doing. Previous notice should be given of all subjects to be brought 
up at a works committee meeting, so that a full agenda may be pre- 
pared. This agenda should then be circulated freely among the fore- 
men and others of the lower grades of management, so that they may 
know what is going on. Full minutes of the proceedings should also 
be circulated to all grades of management. These and other arrange- 
ments which may suggest themselves will make it possible to leave the 
foremen out of the membership of committees without, at the same 
time, undermining their authority. 3 

Exclusion of foremen from shop and works committees does not 
mean by any means that they are to be set off by themselves and given 
no share in the co-operative management of labor conditions. As just 

1 Works Committees, p. 29. 

2 Kirkaldy, Industry and Finance, 1917, pp. 183-185. 

3 Works Committees, pp. 28, 29, also Kirkaldy, Industry and Finance, pp. 183-185. 

108 



noted, they are to be kept informed with regard both to business to 
come before the committee and to what the committee has done. 
Knowing what is coming up, they have a right to make suggestions to 
the secretary and to talk with the men. 

Beyond this, however, some measure should be taken to develop 
the esprit de corps and co-operative tendency among the foremen them- 
selves. This may be done either through committees of foremen, 
through lectures and talks to foremen by the employment manager and 
others, or through typed matter put into the hands of each foreman at 
suitable intervals by the works management. General works lectures 
and lectures to the management and staff by an outside expert called 
in to make a survey of the entire concern have been instituted by an 
English firm with flattering success. 1 Special lectures by a sympathetic 
expert observer and critic may be given to the foremen alone. 

A better plan involves the formation of a foremen's committee or 
association. This plan has been started by the Mobile Shipbuilding 
Company, Mobile, Alabama. The General Manager of this Company, 
Mr. Frank McLaughlin, describes this organization as follows : 

Foremen s Committee — We have formed what is known as 
the Moshico Foremen's Association. As its name signifies, it rep- 
resents all the foremen employed by our company. To become 
eligible for membership in this association, candidates must be 
classified upon our books as foremen or leading men in the yard. 
The By-laws Committee have ruled that our General Superin- 
tendent and all Assistant Superintendents and foremen below him 
are eligible for active membership. The same committee has ruled 
that all the officials of the company, from the President to the 
General Superintendent, are eligible for honorary membership. 
The Moshico Foremen's Association has at present sixty-three 
members. A bi-weekly dinner is given every other Monday night. 
The business sessions convene immediately after the dinner and 
last for two or three hours. Foremen's meetings are also held in 
the yard at least twice a week, where views are exchanged. We 
find that the bi-weekly dinner is a great factor in promoting 
harmony and good feeling among the various foremen. 2 

While examples of full-fledged works committees or systems of 
co-operative management are few and far between in the United States. 
there is indication that some sort of foremen's committee, or commit- 
tee of executives including foremen, is not uncommon. In some cases 
the committees are in the nature of production or efficiency commit- 
tees, in which case they may or may not contribute to good feeling 

1 See Garton Foundation, Memorandum on the Industrial Situation after the War 
(Emergency Fleet Corporation Reprint) p. 76. 
a Letter, August 20, 1918. 

109 



between management and employees. This will depend largely upon 
the personality and point of view of the men who take the leadership 
in managment matters. 1 

General principles which should govern procedure — Certain gen- 
eral principles should govern the procedure of committees. While no 
general rules can be laid down for all types of committees, the follow- 
ing principles should be kept in mind : 

(1) As much democracy in committee action as is consistent with 
efficiency and promptness should be sought for. Important questions 
should go to a referendum. Even where this is not necessary, it will 
help to keep up the interest of the workers at large, who may at times 
carry into industrial democracy that same apathy which more highly 
educated citizens not infrequently evince in the field of political 
government. 

(2) Do not multiply red tape or extend formalism unnecessarily. 
In small committees strict parliamentary usage is not necessary. In 
large ones it is. 

(3) See that the committees have something to do and do it. 
Otherwise interest will lag, and sooner or later both the management 
and the employees will say that the committees do not amount to any- 
thing. Here and there a firm complains of this lack of interest with- 
out being able to state the causes. These probably lie in the absence 

1 The following are a few examples of committees upon which foremen sit, which have 
come to notice through letters from industrial firms: 

Cornell Wood Products Co., Cornell, Wisconsin.— -"Foremen meet monthly with executives 
of the property who are located at the plant and discuss the various problems which have 
come up the previous month." 

Pemberthy Injector Co., Detroit. — There are monthly meetings attended by the various 
foremen, the superintendent, and other executives of the company. "We have also made 
it a practice to invite three or four employees to attend. At these meetings criticisms and 
suggestions relating to our shop practices and policies are invited, and if the criticism is 
sound, a committee is appointed by the chairman to investigate and report their findings and 
suggestions at the next meeting (unless the matter is satisfactorily settled by discussion when 
it is first put forward), at which time the remedy proposed is discussed and criticized, and 
if it appears practical, put to a vote. If the majority are in favor, it is immediately tried 
out in the shop. From the time it is in practice in the shop, its continuation is left entirely 
in the hands of the management to decide." 

Everlastick, Inc., Bridgeport, Conn. — "We have seven plants. In all of these plants 
we have meetings of the foremen and heads of departments to consider all practical questions 
in connection with the operation of the mill, and working conditions. The question of wage 
is not a matter for discussion at these meetings. All other matters, however, are proper 
for discussion at these foremen's meetings." 

F. C. Huyck & Sons, Albany, N. Y.- — "Our organization is small and we employ 475 
men, women, boys, and girls, and they are nearly equally divided. Most of our foremen 
have grown up from the ranks and with our superintendent and the officials of the company 
form a committee for the whole plant." 

Standard Woven Fabric Co., Walpole, Mass. — There is a foremen's committee, which 
holds weekly meetings "at which plant matters are taken up and discussed, such as sug- 
gestions, changes, and personal matters. This system has been in operation approximately 
a year and works well." 

Wm. Demuth & Co., New York City. — -This company in 1917 established an "industrial 
democracy" plan modeled on the analogy of the Federal Government, with a House of 
Representatives, a Senate, and a Cabinet. The latter consists of the higher executive 
officers. The Senate includes superintendents, heads of departments, and the foremen. 
(See article on "An Industrial Democracv," by Ellsworth Sheldon, in American Machinist, 
August 1, 1918). 

A Massachusetts firm which does not wish to be named has what it calls an operating 
committee, appointed by the management and consisting of the foremen and sub-foremen 
of the various departments. This committee meets regularly once a week and considers 
questions pertaining to the various departments. It has been able to make some very 
helpful suggestions, and has decidedly increased the co-operation between the different 
departments. It reports its recommendations to another committee called the efficiency 
committee, consisting of the heads of departments, which in turn refers such of its findings 
as it deems necessary to the president. 

110 



of an active and progressive employment service department, and in 
lukewarmness on the part of the management toward the committee 
idea. The guidance and success of the committee depend largely upon 
its secretary and the employment manager. 

(4) See that committees are organized on a thoroughly demo- 
cratic basis, in order that all classes of employees may be represented 
and have a hearing. There is no inherent reason why the office force 
should not have its own committees, and perhaps be represented on the 
general works committees. 

(5) Let co-operation and frankness be the watchwords. 



Ill 



Chapter V. Works Committees In the United States 



Interest in co-operative management — There are unmistakable 
indications that interest in co-operative management and especially in 
works committees is growing in this country. These indications are 
to be found in the actual or proposed institution of committees in 
various plants, in official and semi-official pronouncements on the sub- 
ject, as well as in the committees which have been set up, in shipyards 
and elsewhere, under Government encouragement or direction. Most 
important to the future of co-operative management is the attitude of 
organized labor as well as that of capital. 

American Federation of Labor — One of the most significant utter- 
ances is that of the Executive Council of the American Federation 
of Labor : x 

The Executive Council believes that in all large permanent 
shops, a regular arrangement should be provided whereby : 

First, a committee of the workers would regularly meet with 
the shop management to confer over matters of production; and 
whereby : 

Second, such committee could carry, beyond the foreman and 
the superintendent, to the general manager or to the president, any 
important grievance which the workers may have with reference 
to wages, hours, and conditions. 

It is fundamental for efficiency in production that the essen- 
tials of team work be understood and followed by all. There 
must be opportunity for intercourse and exchange of viewpoints 
between workers and managers. 

The constructive demands outlined above are predicted upon 
the basic principle of the right and opportunity of workers to 
organize and make collective agreements. There is no other way 
to bring about co-operation for production except by organization 
of workers. Organization is the orderly system for dealing with 
questions which concern Labor in order that decisions and adjust- 
ments may be reached that further the best interests of all con- 
cerned. Employers and workers must talk over matters of mutual 
interest and reach understandings. In present large scale indus- 
try this can be done only by use of the representative system of 
what is commonly called collective bargaining, which is the 
foundation of all effective, just labor administration. 

1 Thirty-eighth Annual Report, 1918, p. 85. 

112 



The Executive Committee of the Socialist Party, at a meeting in 
Chicago, August 10, 1918, adopted a Reconstruction Program, which 
contains the following paragraphs : 

"Self-government in industry is the first essential of a truly demo- 
cratic nation, and the only guarantee of real freedom for the workers. 
The Socialist Party, therefore, demands that the right to organize be a 
fundamental right for all government employees, and that the right to 
strike be in no case denied or abridged. 

"In all industries controlled by the government there shall be 
established principles of democratic management of the conditions of 
employment by shop commitees, elected by the workers." — The Survey, 
Sept. 7, 1918, p. 641. 

Chamber of Commerce of the United States — On October 23, 
1918, the committee on Industrial Relations of the Chamber of Com- 
merce of the United States issued a set of "Preliminary Suggestions 
for Referendum on Industrial Relations." While this document does 
not definitely recommend works committees, it calls attention to the 
Whitley Committee recommendations and declares that : 

Industrial relations which the worker himself has a hand in 
creating are likely to be more satisfactory even though they are 
intrinsically no better than others not so created. Autocratic 
authority is likely to be suspected and' resisted because the reasons 
for its acts are often not understood and its motives are assumed, 
of course, to be selfish. Further, under "right principles to gov- 
ern industry," it declares : 

The right of the worker (as well as any other group in a 

democratic country) to organize voluntarily for collective action 

not inimical to the general welfare cannot be denied or resisted 

without creating a sense of industrial injustice. Power developed 

by organization, however, cannot be permitted to work injury to 

the national welfare nor to demoralize the industrial process. It 

is the duty of government to require that both management and 

men function efficiently and mould their motives. 

In a later memorandum, dated December 2, 1918, the Committee 

on Industrial Relations, gives more definite expression to its interest 

in co-operative management, and urges the formation of "national 

adjustment boards" in each industry. 

The adjustment of industrial relations, not by conflict, but by 
agencies established for the purpose in which the workers' interest 
has equal influence with that of the employer is your Committee's 
suggestion to meet the situation. Where employer and employees 
are able by joint action to create an effective agency for the regu- 
lation of their industry on the basis of right principles, the neces- 
sity for federal or state control or interference will be minimized. 

113 



The process of organizing adjustment boards for the stand- 
ardization of wages, hours, and conditions of employment, for the 
interpretation and application of such standards, and for their 
enforcement, has been going forward. Your committee approves 
this principle and urges the various industries to hasten the organi- 
zation of National Adjustment Boards in each industry following 
the example of the metals, building, and needle trades, to meet the 
difficult problems of reconstruction. 

The Committee now voices definite approval also of works 
committees : 

Employees should be accorded a voice in determining the con- 
ditions under which their work is performed by the untrammeled 
election of plant and shop committees to deal with these matters in 
conjunction with management. 

Furthermore, the Committee takes a leaf out of English opinion 
and sees in the formation of national joint councils a way to regulate 
competition and to establish standards, as well as to secure good feel- 
ing between labor and capital. 

Industrial managers acknowledge that employment conditions 
are frequently not satisfactory, but they show that the pressure of 
competitive conditions may make it impossible for the single 
employer or individual enterprise to improve upon them. The 
plan of organizing adjustment boards provides a remedy for this 
difficulty by assisting each industry or trade to establish standards 
for itself, protected against the demoralization of these standards 
by competition. The policy of determining industrial relations 
(wages, hours, and conditions of employment), not only by a proc- 
ess of measuring the economic strength of the worker against 
management, but by a process in which reason, public policy, 
human needs, shall predominate over might, has one great advan- 
tage — it disposes of at least three-fourths of the causes of friction 
and strife between the employer and his employees. Private enter- 
prise and initiative, exercised constructively, will be accelerated 
rather than discouraged by thus protecting standards of industrial 
relations to fit the accepted ideas of economic justice. 

Power won from a reluctant employer by labor, organized 
economically or politically, is likely to be used more unscrupulously 
and with less constructive wisdom or regard for public welfare 
than is a participation in management granted by employers in 
recognition of a moral right of the worker to have it, in so far 
as he show r s himself competent to exercise it without abuse and 
wisely. 

114 



Thus we have the leaders of organized labor on the one hand 
and representatives of capital on the other, if not actually advocating 
co-operative management, at least lending an ear to those who do. This 
is, of course, by no means proof that the rank and file of organized 
labor or of employers will take kindly to the idea, at least for some 
time to come. 

Pronouncements from governmental agencies- — From Government 
agencies we have the awards of the various war labor adjustment 
boards, the circulars of the Information and Education Section of the 
United States Department of Labor and a pronouncement from the 
War Labor Policies Board. 

The Information and Education Service of the Department of 
Labor, in the Summer of 1918, requested manufacturing concerns all 
over the country to establish so-called "war industries committees." 
The functions of these committees were limited to patriotic service : 
(a) "calling meetings when government representatives are sent to 
address the men, (b) arranging for the distribution of * government 
literature, (c) arranging parades and other patriotic demonstrations, 
(d) keeping all informed on war matters and government activities, so 
that, knowing their country's needs, both employers and employees will 
eagerly respond to the call of duty." It is probable that a certain num- 
ber of these committees organized for patriotic service may form the 
nuclei from which later genuine industrial committees will develop. 

The War Labor Policies Board, on October 18, 1918, issued a 
statement of "Standards Governing the Employment of Women in 
Industry." This statement contained the following section : 

The responsibility should not rest upon the management alone 
to determine wisely and effectively the conditions which should be 
established. The genuine co-operation essential to production can 
be secured only if definite channels of communication between 
employers and groups of their workers are established. The need 
of creating methods of joint negotiation between employers and 
groups of employees is especially great in the light of the critical 
points of controversy which may arise in a time like the present. 
Existing channels should be preserved and new ones opened if 
required, to provide easier access for discussion between an 
employer and his employees. 

Finally, the decisions of the National War Labor Board, the Ship- 
building Labor Adjustment Board, and scattered Government awards 
elsewhere, have provided for the establishment of shop commit tees in 
plants engaged on Government work. 

115 



Shipbuilding Labor Adjustment Board decisions — The Shipbuild- 
ing Labor Adjustment Board embodied a provision for "shop" commit- 
tees in most of its original awards for the various shipbuilding dis- 
tricts. The first mention of shop committees in shipyards is contained 
in an "Agreement as to Working Conditions Between Employers and 
Employees in the Yards of the Columbia River District." This agree- 
ment was made an integral part of the Macy Board's "Decision Touch- 
ing Disputes in Shipyards of San Francisco Bay and Columbia River 
and Puget Sound District." This was signed November 4, 1917. The 
shop committee provision, which applied specifically to the Columbia 
River District, was as follows : 

The employees in each craft or calling in a shop shall have 
the right to select three (3) of their number to represent them as 
members of a shop committee. Each member of this committee 
shall be chosen by a majority vote through secret ballot in such 
manner as the employees shall direct. The chairman of each craft 
committee shall be a member of the joint shop committee. 

"When a grievance arises it shall be taken up by the commit- 
tee, first with the foreman, second with the superintendent. In the 
event the question has not been adjusted the committee shall then 
take the matter up with the president of the company. If the 
matter cannot be adjusted between the shop committee and the 
president, the shop committee shall have the right to call into con- 
ference with the president a representative chosen by the commit- 
tee. In case the president fails to adjust the matter satisfactorily, 
it shall be submitted to the examiner to be appointed by the Ship- 
building Labor Adjustment Board as provided in memorandum 
of August 20, 1917, which is attached hereto and make a part 
hereof. 

This new method of handling grievances in shipyards may well be 
compared with the directions for the San Francisco District, 
which read : 

Such grievances as do not relate to the subject of hours or 
wages covered by this agreement, which may arise in any shop, 
shall be given consideration as follows: Upon complaint being 
made by either party to this agreement in writing, the duly author- 
ized representative of the firm and the business representative of 
the union, or the representative of the Iron Trades Council, who 
may be elected to represent the union, shall immediately proceed 
to the shop or shops where such grievances exist and endeavor to 
mutually settle the same. 

Negotiations in the San Francisco District were thus left, by joint 
agreement, to be carried on directly between employers and union 

116 



officials. The same was true in the Seattle District. In the Los 
Angeles District shop committees were established in some plants, but 
were soon controlled largely by the unions. 

Provisions identical to those in the Portland District were 
embodied in the Decision for the South Atlantic and Gulf Shipyards, 
March 4, 1918. There was added, however, a third paragraph: 

Any committeeman appointed hereunder who shall be found 
to have been discharged without just or sufficient cause after the 
investigation in the manner herein provided for the adjustment of 
grievances shall be reinstated with full pay for all time lost. 

The same provisions were included in the Decision for the North 
Atlantic and Hudson River Shipyards, April 6, 1.918. 

In the Decision for the Shipyards about the Great Lakes, April 
19, 1918, the shop committee sections were prefaced as follows : 

The shipyard owners are directed to co-operate with 
employees in making effective the following rules in reference to 
machinery for the settlement of industrial disputes. 

In the Decision for Delaware River and Baltimore Shipyards, 
February 14, 1918, corrected and extended April 6, 1918, no provisions 
for shop committees appear. 

The original inclusion of the shop committee provision for the 
Columbia River District was due to the situation in Portland, where 
anti-union policies had long been pursued by most of the shipbuilding 
companies and some compromise plan between anti-union and outright 
union was necessary. 1 

On October 24, 1918, the Macy Board issued two decisions, 2 "as 
to wages, hours, and other conditions," which superseded all its 
previous decisions. One of these new decisions was for the Pacific 
Coast Shipyards, the other for the yards along the Atlantic and Gulf 
coasts and the Great Lakes. Section IV in both of these decisions 
reads as follows : 

Shop Committees for the Adjustment of Grievances — Ship- 
yard owners not parties to joint agreements with the labor organi- 
zations of their respective districts are directed to co-operate with 
their employees in making effective the following rules in refer- 
ence to machinery for the settlement of industrial disputes ; pro- 
vided that shipyards having in operation substantially similar 
rules may, on the recommendation of the district examiner 
approved by the Board, be permitted to continue such rules in 
operation : 

. * Letter of II. R. Seager, Secretary of the Board. September 9, 191S. 
2 These aVe dated October 1. 

117 



(1) The employees of each craft or calling in a shop or yard 
shall have the right to select three of their number to represent 
them as members of a shop committee. Each member of this 
committee shall be chosen for a term of six months by majority 
vote through secret ballot, in such manner as the employees may 
direct. Vacancies for an unexpired term shall be filled by ballot. 
Members of an outgoing committee shall be eligible for re-election. 
The chairman of each shop committee shall be a member of a 
joint shop committee. The joint shop committee shall by ballot 
select five of its members to act as an executive committee to rep- 
resent it in conferences with the superintendent or higher officials 
of the company. In contested cases, the district examiner shall 
decide as to the validity of the election of a shop committee and 
supervise a new election when he deems such new election 
necessary. 

(2) "When a grievance arises it shall be taken up by the 
craft or laborers' committee with the foreman or general foreman. 
Failing an adjustment, the craft or laborers' committee may then 
take it up with the superintendent and may call in the assistance 
of a representative chosen by the committee to confer over the 
grievance with the superintendent or the higher officials of the 
company. If the grievance concerns more than one craft, it shall 
be handled through the joint shop committee, first with the super- 
intendent, and, then failing a settlement, with the higher officials 
of the company. In such conference with the superintendent or 
higher officials, the joint shop committee shall have the right to 
call in the assistance of a representative chosen by the committee. 
In case such conference fails to result in a satisfactory adjust- 
ment, the grievance shall be submitted to the district examiner. 

(3) Any committeeman elected in accordance with the pro- 
visions of this section, who shall be found to have been discharged 
without just or sufficient cause, after due investigation in the 
manner herein provided for the adjustment of grievances, shall 
be reinstated with full pay for all time lost. 

These two decisions cover the whole country and give the 
employees of any shipyard which comes under the authority of the 
Macy Board the right to organize shop committees. It should be noted 
that the Macy Board decisions grant to the employees of "each craft 
or calling" the right to form a shop committee, and that the emplovers 
are "directed" to co-operate with their men in the matter. Attention 
should also be called to the "joint shop committee" made up of the 
chairmen of the craft committees. This "joint shop committee" would 

118 



more properly be called a works committee. The method of its con- 
stitution was adopted in deference to the craft lines upon which unions 
are organized. Membership on the works committee is thus based on 
craft, and not on departmental representation. 1 

Unfortunately there is available comparatively little information 
as to the actual operation of committees in shipyards. Where the 
proper spirit has been manifested by the employer and the unions have 
not been too aggressive, the committees appear to have been successful. 2 

In the Portland (Oregon) District the committees for a time 
did not function well. The. reasons for this failure are given by one 
familiar with the situation as follows : 

(a) Not all yards have definitely constituted committees with 
regular periods of meeting; nor are all crafts within the yards so 
organized. 

(b) The committees do not consider more than 20 per cent of 
the complaints arising under the Macy Board decisions. The 
other 80 per cent are taken up with the examiner by either the 
business agents of the various unions or by the direct appeal of 
the interested parties. 

(c) Jealousy of the local unions. Unions do not wish the 
committees to usurp their functions. They evidently do not want 
industries to be organized vertically, but rather transversely. 

(d) Indifference of workers. The men are busy and are 
earning good wages and do not take very much interest in organiz- 
ing these committees. 

In the Great Lakes District it was found that the committees were 
not functioning well, because disputes, instead of going through com- 
mittee channels as they should, were taken directly up to the district 
examiner representing the Macy Board and the Emergency Fleet Cor- 
poration. To remedy this situation, it was decided that both men and 
employers should be encouraged to regard the committees as in a sense 
representative of government interests, in that they are a part of the 
machinery for avoiding or settling industrial grievances and disputes 
which would otherwise interfere with production in war time. The 
Board, on November 1, 1918 accordingly issued the following "State- 
ment in Reference to Shop Committees." It applied only to the Great 
Lakes District : 

In interpretation of Section IV of the Decision of October 
24, and to clear up certain ambiguities in the phrasing, this sup- 
plementary statement for the guidance of joint shop committees 
is issued : 

1 The committee system in the Sparrows Point (Md.) plant of the Bethlehem Ship- 
building Corporation — a system which has tentatively been accepted by the Macy Board as 
"substantially similar" to the system prescribed in its Decisions — is based upon departmental 
and not on craft lines. 

2 See, for illustration, the committees in the Mobile Shipbuilding Company's plant 
at Mobile, Alabama, — Appendix \, pp. 212 214. 

119 



(1) The joint shop committee is to be guided in its work by 
the knowledge that it is acting in the interest of the government 
and that it is, next to the examiner, the principal medium for the 
adjustment of all grievances presented by either the men or the 
company. It should deal with grievances as a judicial body and 
is to do its utmost to effect a settlement in accordance with the 
provisions of the award without recourse to the examiner, who is 
to be called in only as a last resort. It is understood that it is to 
approach all questions in dispute in a non-partisan manner and 
give the government the benefit of its fair minded judgment. It is 
to render decisions that will be considered fair and impartial. 

(2) The executive committee is intended to assist the joint 
shop committee in the transaction of its business, but may be dis- 
pensed with if in the judgment of the examiner and the joint 
shop committee it serves no useful purpose. 

(3) Where joint shop committees are established and operate 
under the guidance and supervision of the examiner, a craft com- 
mittee should not call in an outside representative until after the 
joint shop committee fails to effect a satisfactory settlement. 

(4) The examiner must see to it that grievances referred to 
the joint shop committee are promptly and efficiently dealt with, 
He is, therefore, authorized to approve any reasonable plan by 
which the joint shop committee may meet under proper condi- 
tions and at regular intervals. 

(5) The joint shop committee should impress upon the men 
their obligation to the Government to make their maximum con- 
tribution to the production of ships. Any failure on their part to 
work on Saturday afternoons or the prescribed number of hours 
on other days or to comply with other rules laid down by the Ship- 
building Labor Adjustment Board or by the, District Manager of 
the Fleet Corporation designed to secure maximum ship pro- 
duction, must be condemned as evidence of an unwillingness on 
their part to play fair with the Government and carry out the 

. implied obligation resulting from acceptance of the benefits of the 
machinery created by the Government. 

The committees in most of the Great Lakes District shipyards 
are now (December, 1918) functioning fairly well. Of the twenty-two 
companies on the Great Lakes, fifteen have established committees. 
Of these fifteen, eleven report that the committees are functioning 
"fairly well," two report "average," and one reports "poor." One large 
company operating a number of yards reports that committees are not 
functioning in all departments. The partial failure of the committees 
to function properly is explained by the fact that "about everything 

120 



covered by the initial (Macy Board) award was promptly conceded. 
Therefore, there was little, if anything, left for shop committees to do 
in departments working exclusively on an hourly rate basis. The com- 
mittee in the riveting department is quite active on account of the 
various items of piece-work ratings which, required adjustment with 
change of type or arrangement of values." In another yard seven- 
teen craft committees were elected. This made the joint shop com- 
mittee too large and it was subsequently reduced to an executive com- 
mittee of five, which is handling, all grievances in a satisfactory 
manner. 

In the South Atlantic and East Gulf Coast shipyards, out of forty- 
two reporting twenty-four report committees functioning, although 
some have been but recently organized, two report committees function- 
ing "poorly" and three report committees "not functioning." Informa- 
tion is not at hand with regard to the actual working of these commit- 
tees. In the Gulf District, comprising the Louisiana and Texas Coast, 
nine shipyards report- committees, all of which seem to be working in 
satisfactory co-operation with the company officials. 

In the North Atlantic District the committee plan has but recently 
begun to make headway. Two plants in Portland have committees 
functioning "fairly well." A plant in Connecticut has a shop com- 
mittee composed of men of unusual intelligence, and therefore naturally 
functions well. In the steel shipyards of New England the committees 
seem to give promise of excellent work. The committee plan estab- 
lished in the Bethlehem Shipbuilding Corporation's plant at Sparrows 
Point, Md., is given in Appendix V. 

Obviously a decision of a government board, unless it applies to a 
specific situation, will hardly enter into details as to the manner in 
which an award is to be carried out. Accordingly, we find in the Macy 
Board's decisions no directions or recommendations with regard to 
time and place of meeting, minutes, referendum, or officers other than 
chairmen. Nothing is said as to whether meetings are to be held 
within plant precincts or outside, or whether the men are to meet on 
company's time or their own. All these details are left to the discre- 
tion of the District Examiner. So far as information is available, the 
referendum and minority representation have not been tried in con- 
nection with any shipyard committee under Macy Board auspices. 
Payment to committee members for time spent in meetings is left to 
the decision of the examiner. In one district pay is allowed to the 
extent of one hour a week — the man getting the hourly rate of his 
trade. In another district the examiner contemplates payment of 
two dollars a meeting to each member. 

In certain instances, as has been the case also with committees pre- 
scribed by the National War Labor Board, difficulties with regard to 

121 



elections have occurred. In some cases the local unions elected com- 
mittee members at their own meetings. In some instances the Macy 
Board has overruled such election and directed the examiner to hold 
another election in some neutral place, in which all workers, whether 
union or non-union, should be allowed to vote. In at least one 
instance, also, the Board held an election illegal because it had been held 
in the company's office, which was regarded as not neutral. Sometimes 
the employees, sometimes the unions, have attempted to control the 
committees, but it is felt that in most cases fairly representative com- 
mittees have been secured. 

The Xational War Labor Board has provided for works commit- 
tees in at least thirteen of its many awards. 1 The War Labor Board 
has in general given more detailed attention to the organization and 
operation of works committees than has the Macy Board. A memo- 
randum on election of committees, which indicates how carefully the 
War Labor Board has considered the matter, is given in Appendix VII. 

Other boards and decisions — There have as yet been no shop com- 
mittees set up by the National Adjustment Commission (which handles 
longshoremen and sailors disputes). The chief difficulty here is the 
mobility of labor and the fact that there is no real "shop." Mr. R. P. 
Bass, the Chairman of the Commission, has made the recommenda- 
tion, however, that port or harbor committees be set up. Such com- 
mittees would be somewhat similar to the elaborate community com- 
mittee set up at Bridgeport by the War Labor Board. 

Xo shop committees have been set up by the Emergency Con- 
struction Wage Commission which handles construction work for the 
War Department. The War Department, in this respect, deals only 
with representatives of organized labor, preferably the Presidents of 
the International Brotherhoods. If the men on the particular con- 
struction work are not organized, the War Department handles the 
situation itself on the basis of union scales and conditions in the 
vicinity. 

The Saddlery and Harness Commission has established no 
committees. 

Professor William Z. Ripley, Administrator of Labor Standards 
for Army Clothing, Quartermaster's Corps, in the case of Wanamaker 
& Brown, Philadelphia, May 23, 1918, held that since a majority of the 
workers were union members and a partial recognition of the union had 
already been accorded, it was proper to direct adjustment of disputes 
by a representative of the firm in conference with a representative of 
the Amalgamated Garment Workers' Union. However, non-union 

1 See Appendix VII. 

122 



workers were to be given opportunity either to elect an independent 
shop chairman or to authorize the firm representative to speak for 
them. The right of the employer to employ and discharge workers for 
any reasons other than legitimate union activities was affirmed, but the 
Administrator recommended strongly conferences with the representa- 
tives of the workers to maintain efficiency and discipline, a mutual 
spirit of accommodation, a recognition of the right of the employees 
to have some voice in determining the conditions of work and of the 
joint interest of all to eliminate friction for the sake of highest 
efficiency. 

The United States Railroad Administration in General Order 
No. 13, issued March 22, 1918, ratified the method of adjusting dis- 
putes already in practice, with provision that the dispute could be car- 
ried up to Railway Board of Adjustment No. 1 : 

Personal grievances or controversies arising under interpre- 
tation of wage agreements, and all other disputes arising between 
officials of a railroad and its employees, covered by this under- 
standing, will be handled in their usual manner by general commit- 
tees of the employees up to and including the chief operating 
officer of the railroad (or some one officially designated by him) 
when, if an agreement is not reached, the chairman of the general 
committee of employees may refer the matter to the chief execu- 
tive officer of the organization concerned, and if the contention of 
the employees' committee is approved by such executive officer, 
then the chief operating officer of the railroad and the chief execu- 
tive officer of the organization concerned shall refer the matter, 
with all supporting papers, to the Director of the Division of Labor 
of the United States Railroad Administration, who will in turn 
present the case to the Railway Board of Adjustment No. 1, which 
board shall promptly hear and decide the case, giving due notice 
to the chief operating officer of the railroad interested and to the 
chief executive officer of the organization concerned of the time 
for hearing. 

No matter will be considered by the Railway Board of Adjust- 
ment No. 1 unless officially referred to it in the manner herein 
prescribed. 

A similar provision was made in General Order No. 29. May 31. 
1918, relative to Railway Board of Adjustment No. 2. 

The awards of the Ordnance Department provide not for shop 
committees, but for special mediation committees, one for each dispute. 
of three members, representing the men. the employer, and the Govern- 
ment, respectively. The only exception which has come to notice is an 

123 



award relating to women employees in the case of the United States 
Cartridge Company, Lowell, 'Mass. : 

"In harmony with the decisions of the War Labor Board giv- 
ing employees the right to bargain collectively, arrangements 
should be made at once whereby female employees may have 
means for bringing grievances and other causes to the attention of 
the management through committees of their own selection." 

The United States Fuel Administration announced on July 23, 
1918, that at a conference between the Federal Fuel Administrator, 
Harry A. Garfield, and the international officials of the United Mine 
Workers of America, a complete understanding was reached with 
regard to jurisdiction in the adjustment of labor disputes. The Fuel 
Administrator created a Bureau of Labor to which all matters relating 
to labor controversies were to be referred for settlement. In the state- 
ment of principles agreed to by the representatives of the United Mine 
Workers of America and the Fuel Administration, the following sec- 
tion occurs : 

"On the basis of the foregoing understanding, which he 
regards as just and imperative in the present crisis, the United 
States Fuel Administrator has insisted and will continue to insist 
that any adjustment of labor questions in the coal mining indus- 
try, whether by joint agreement between operators and mine work- 
ers or by agreements severally made with the United States Fuel 
Administrator, shall embody wherever applicable and substantially 
the principles, provisions, and practices laid down in the Maryland 
and upper Potomac settlement of May 6, 1918, and recognize the 
authority of the International Lmion of Mine Workers in the 
organized fields and their jurisdiction over controversies arising 
in said fields." 

The Maryland and upper Potomac settlement of May 6, 1918, to 
which reference is made, contains a provision for the establishment 
and recognition of mine committees. Mine committees shall be elected, 
and the management shall receive such committees to adjust disputes 
which the superintendent and the mine foreman and the employee or 
employees affected are unable to adjust. In case it is impossible thus 
to reach a settlement, the dispute shall be referred to an umpire 
appointed at the request of the United States Fuel Administrator, who 
shall have the right to review the appointment. Members of commit- 
tees are given protection in the discharge of their duties. The right 
of employees to meet in peaceful assemblage shall not be interfered 
with or abridged. 

124 



Thus the Government in the coal mining industry very definitely 
recognized the place of workingmen's committees in the adjustment of 
labor disputes. 1 

The Loyal Legion of Loggers and Lumbermen — Mention should 
be made of the work of Colonel — now Brigadier General — Disque in 
bringing harmony and decent working conditions into the spruce 
logging camps of the Northwest. Colonel Disque, as head of Spruce 
Production Division of the Aircraft Production Board, organized the 
Loyal Legion of Loggers and Lumbermen. He gathered the employ- 
ers, then the workmen, into groups, and finally secured an organiza- 
tion covering the entire spruce area of the Northwest. Joint commit- 
tees of employers' and employees' representatives were appointed in 
the mills and camps ; then district committees were established, and 
finally a Central Council, with headquarters at Portland. Appeals on 
grievances lie through the local committees and the district councils 
to the Central Council. 

The employees' members of the district councils were elected by 
the men ; employers' representatives were appointed by Colonel Disque. 
Employers and employees are each s represented by three members. 
These six elect a chairman, who is a member of the Central Council. 

What had been accomplished by the Loyal Legion of Loggers and 
Lumbermen by midsummer, 1918, is indicated in the Legion's Bulletin, 
No. 46: 

This, the first semi-annual digest of the accomplishments of 
the Loyal Legion of Loggers and Lumbermen, is submitted to the 
members with a view to visualizing some of the results obtained 
through their loyalty and co-operation with the War Department. 

(1) March 1, the eight-hour day was inaugurated in the camps 
and mills of the Northwest, the Loyal Legion being one of the 
prominent factors in this movement. 

(2) The 10-hour wage scale for eight hours' work was estab- 
lished and so graduated that every member now receives pay com- 
mensurate with the work he is doing. 

(3) Elected representatives of each local have been called 
together in conferences held in the Coast and Inland Empire 
divisions. These conventions have afforded the members an 
opportunity to present to Colonel Disque their ideas and sugges- 
tions pertaining to the general welfare of the Legion. 

(4) Your headquarters has made a sanitation survey of over 
90 camps and. mills, which survey has resulted in the publication 
of a' pamphlet on camp sanitation and construction. These booklets 

1 See "Labor Adjustment and the Payment of Bonuses at Coal Mines." United States 
Bureau of Labor Statistics, Monthly Labor Review, September, 1918, pp. IS 

125 



are now in the hands of every operator with the recommenda- 
tion that the living conditions of the Northwest logger be brought 
to the new standard set by these experts on camp hygiene. 
Already some 350 locals have reported sanitary improvements 
made upon suggestions from this office, although the actual work 
of cleaning up has been under way for less than three months. 

(5) There has been established a welfare department that 
acts as a clearing house for complaints and questions as to hours 
and wages and interpretations of the draft laws and other matters 
affecting the welfare of our membership. 

(6) Our records indicate that some 250 locals have installed 
reading rooms, libraries, recreation and moving picture halls, and 
other healthful facilities for improving the leisure hours of the 
workmen in the forests of Oregon, Washington and Idaho. 

(7) Fourteen officers and 125 enlisted men have been placed 
at the service of the members to assist them in developing the 
objects and purposes of the Legion. That something is being 
accomplished is best indicated in the fact that 1,500 letters a week 
pass through the Legion headquarters' office. 

(8) Ninety thousand copies of a monthly magazine are being 
circulated for the benefit of the members of the Legion, and 
through this medium you are kept informed upon the progress 
and development of your organization as well as upon war events 
of current interest. 

(9) Four complete moving picture outfits have been sent into 
the camps and mills from these headquarters, and an effort is 
being made to give every member the benefit of these industrial 
war pictures showing the relative value of your work to the Gov- 
ernment's war activities in Europe. 

(10) Strikes, sedition, and sabotage, which were rampant in 
this territory before the advent of the Loyal Legion, have been 
practically eliminated through the patriotic efforts of the 110,000 
workmen enrolled under its banners. 

(11) The general labor turnover, estimated at nearly 1,000 
per cent a year, has been substantially reduced as a result of an 
awakened national pride, patriotism and interest in the war pro- 
gram of the Federal administration. Closer co-operation and per- 
sonal relation between employer and employee have increased the 
harvest of war timber in the Pacific Northwest some 500 per cent 
during the last six months. 

(12) Colonel Disque is authority for the statement that the 
cost of airplane and ship material to the allied governments has 
been greatly reduced through the earnest efforts of the members 
of this organization. 

126 



(13) A plan of education in new methods of preventing fires 
in forests and mills embraced in the territory of the Loyal Legion 
has been put into effect. 

(14) The greatest forward step is still to be taken in the 
immediate future. We refer to the complete harmonizing of inter- 
ests of laboring men and operators. To complete this in a manner 
fair and just toall, the laboring men must be represented equally 
with operators in all deliberations. This will be accomplished by 
creating in each local, district, and general headquarters a council 
the membership of which will equally represent employer and 
employee. 

These councils will determine all problems of wages, camp 
conditions, hours of labor, overtime, etc., as provided for in a set 
of regulations which will be made up by the headquarters council. 
Complaint and discontent have made way for co-operation and 
appreciation, and it may be said in all candor and truthfulness that 
the unqualified success which has crowned the efforts of Colonel 
Disque and the Spruce Production Division and attracted such a 
full measure of national commendation and approval was made 
possible only by the loyal efforts and interest of the members in 
the task assigned to them through this Legion. 

The Loyal Legion exists as the strongest industrial organiza- 
tion for war purposes in the United States. It has accomplished 
more in six months than any other agency could have accom- 
plished in a like number of years. It is, therefore, the desire of 
those in charge to impress upon the members the necessity of keep- 
ing constantly in mind their pledge and their interest in this 
organization and its objects and purposes. We request that you 
feel free to communicate with these headquarters on any matter of 
general interest to the Government in its war activities. Our 
offices are open at all times to receive you and any matter that you 
may take up in writing will have our immediate attention. 

By direction of Colonel Disque. 

M. E. Crumpacker, Captain, A. S., M. A.. 

Officer in Charge. 1 

The co-operative management plan as embodied in the Legion has 
been highly praised by the workers, the employers, and the press. It is 
clear that it bears considerable resemblance to the system of councils 
recommended by the Whitley Committee. 

It is too early and conditions in the immediate future are too 
uncertain to say whether the semi-compulsory installation of works 
committees under the awards of the various war labor adjustment 

1 American Lumberman, August 24, 1918, pp. 42, 61. 

127 



boards will have appreciable effect either to quicken or retard the move- 
ment toward co-operative management in this country. Much will 
depend upon the temper of employers, who have undoubtedly been 
restive under government control of industrial relations and of 
employees, who will be restive during the period of withdrawal of gov- 
ernmental control and falling wages. If employers and employees 
have found that on the whole the committees formed under the pressure 
of war conditions have brought them nearer together and contributed 
to mutual understanding, good sense would dictate the continuance and 
improvement of the committee systems established. The conflict atti- 
tude, however, will not easily be subordinated, and the only form of 
compulsion that will keep to its subordination will be public opinion. 
In so far as the adjustment boards' awards have carried public opinion 
with them, an instant toppling over of the committees and a return to 
the old conditions would be looked upon by the public with disfavor 
and would be a matter for regret. 

It should be pointed out that many of these awards have been 
made at the time of great .industrial unrest, and that the committees set 
up in many instances are strictly grievance committees and nothing 
more. In fact, it may be said in general that the committees formed 
under the direction of the various government awards are not in the 
same class with works' committees voluntarily set up. They lie on the 
border line between genuine positive co-operative management and 
devices for compulsory conciliation (if the phrase may be allowed). 
This being true, their future is doubtful, but it is to be hoped that they 
will nevertheless pave the way for permanent committee systems. 
They will at least have familiarized both employers and employees with, 
the committee idea to some extent. 

Works committees in American industrial plants — When we turn 
to American experience with voluntarily organized committees, we find 
a few, but only a few, clear cut examples which throw light upon the 
proper organization and the successful functioning of co-operative 
management plans. No exhaustive investigation has been attempted ; 
no questionnaire has been sent out. Several scores of letters of 
inquiry, however, were addressed to industrial firms, selected at 
random. Extracts from the more significant replies are given in 
Appendix V. Special attention is called to the plans in operation in 
the following firms : 

American Rolling Mills Company, The Browning Company, 
Hart Schaffner & Marx, The Irving-Pitt Manufacturing Com- 
pany, The Joseph & Feiss Company — Clothcraft Shops, The 
William Filene's Sons Company, The Leeds & Northup Company, 
Mobile Shipbuilding Company, Proctor & Gamble Company, 

128 



Standard Oil Company, William DeMuth & Co., Colorado Fuel 
and Iron Company, Midvale Steel and Ordnance Company, Bethle- 
hem Shipbuilding Corporation, Bethlehem Steel Company. 

A list of personal opinions both favorable and unfavorable on the 
part of firms which have not instituted any form of committee system 
is also given. In general it may be said that the companies which have 
committee systems are favorably disposed and some which do not have 
them are seriously contemplating their establishment. Many other 
firms evince a desire to know something about the works committee 
idea. In a few cases hostility to the idea is expressed on the ground 
that it involves collective bargaining and recognition of "outside 
influences." There are other cases in which the company has recog- 
nized the unions, bargained collectively, and established a committee 
system not unlike that recommended by the Whitley Committee. In 
this latter class clearly belongs the elaborate system in operation in the 
plant of Hart, SchafTner & Marx, Chicago. A similar very successful 
system, not involving questions relating to union organization, how- 
ever, is that of the William Filene's Sons Company, Boston. 

Size of plant in relation to committee system — The elaborate indus- 
trial representation systems, set up in large plants like those of the 
Standard Oil Company, the Midvale Steel and Ordnance Company, the 
Colorado Fuel and Iron Company, and the Bethlehem Steel Corpora- 
tion, while of high interest, carry for industry at large no greater 
information and lesson than do the committees organized in smaller 
concerns. Committees can be found in this country in firms of all 
sizes. 

Size is a matter of importance in determining the desirability or 
necessity of organizing works committees. The larger the plant the 
greater the need for committees and the more help they will be in 
securing understanding and co-operation between men and manage- 
ment. In small plants where the manager can know by name and per- 
haps have a personal touch with every workman, the need is much 
less. Such managers are almost sure to take the position that they do 
not need committees. Yet it is not only persons who are strangers to 
one another who can accomplish by collective discussion and repre- 
sentative committee action what they could not individually, but 
friends and acquaintances as well. The ancient folk-moot was not an 
association of strangers, nor were the wise men who circled around the 
tribal council fire known to one another only by number. If the man- 
ager of a small plant can meet his men individually in a man-to-man. 
human way, there is every reason to think that he could turn this 
human touch to collective account through friendly discussion and 
planning around a joint committee table. Even in the small shop 

129 



committee action "may help to bring to light difficulties, needs, feelings, 
and defects which might otherwise have remained concealed." 1 The fact 
remains, however, that in large plants, with thousands of employees, 
where personal touch between management and individual workmen is 
impossible, works committees constitute the necessary machinery for 
the establishment and maintenance of the co-operative attitude. 

A perusal of the Appendix will show also that committees in 
American firms are of very diverse type and organization. A wide 
range of function is also represented, although for the most part 
American committee functions are as yet limited to the consideration 
and settlement of grievances. There is much indication, however, that 
as time goes on the function of committees in this country will be 
extended and much more definitely defined. 

No good purpose would be served by an attempt at an extended 
analysis of American experiences as shown in these letters. This 
should await fuller developments and a more careful inquiry than it has 
been possible to make at the present time. 

Many letters were received which show that the writers did not 
have an adequate conception of the meaning of the term "shop com- 
mittee" or "works committee" and had given little or no thought to 
co-operative management. 

In the light of English experience and of the favorable results 
which have been obtained with works committees in some American 
establishments, is the works committee plan likely to prove capable 
of wide application in the United States ? Undoubtedly it will 
encounter difficulties here greater than those in England. Employers' 
attitude is probably not so favorable here. A still greater difficulty, 
however, may be found in the task of harmonizing works committees 
with union ideals, demands, and organization. 

Relation of works committees to trade unions — It has been sug- 
gested a number of times that the Whitley Committee proposals for 
works committees and industrial councils have been made primarily 
for industries in which trade unions and employers' associations have 
already attained to a high degree of organization. While the Whitley 
Committee, in its second report, made recommendations for unor- 
ganized and partially organized industries, those recommendations 
involved a certain amount of government control and co-operation 
through the Board of Trade, and the Government refused to adopt 
them. It has been noted, also, that the mental attitude of both labor 
and capital is different — less hostile, less obstinate, less pugnacious — 
than in this country ; and that American industry is by no means so 
highly organized, either on the part of the workers or on that of 
employers, as is English industry. 

1 Works Committees, p. 44. 

130 



Problems of works committees in non-union plants — These two 
facts, the antagonism between capital and labor, and deficiencies in 
organization, suggest some difficult questions. Will works committees 
be beneficial in non-union plants? If so, from what points of view? 
When instituted in non-union plants, will they be regarded by the 
management as a bulwark against the "outside interference" of the 
unions, and so used; or will they produce a better understanding on 
both sides, such as may pave the way to efficient and orderly organiza- 
tion of the industry into trade unions and employers' associations? 
When introduced into union establishments will they supplant the union 
shop committee (where one exists) and trench upon the powers of the 
business agent ; or will they be built up on the union nucleus and 
offer the broad-minded and intelligent business agent greater oppor- 
tunities for constructive work than he now has ? 

These pages have advocated frankness between employer and 
employee. It is but fair that they be equally frank with the reader, be 
he employer or workman. Frank facing of the issue compels the 
admission that the employer who is thoroughly opposed to organized 
labor will see in works committees one of two things : either an oppor- 
tunity to "get right" with his own men and organize his plant in such 
a way that the unions will have no attraction for them, or a device 
being advocated by union sympathizers to get the nose of the camel 
into the tent, whereupon the whole program of unionism will follow. 
On the other hand, organized labor officials will be suspicious of any 
committee plan that does not look forward, if not to out-and-out union 
committees, at least to close co-operation with the unions, and any 
committee plan that bears the earmarks of being set up to defeat the 
organization of the establishment by the unions will be condemned at 
once. 

Conflict of opinion with regard to non-union committees — Of all 
this there is sufficient evidence. The officials of one large company, 
which has instituted a well-known conciliation plan, do not hesitate to 
say that it is working satisfactorily, while the trade union officials 
of the region condemn it. 

"You mention co-operative management." says one union 
official, "there is none of it. It is a plan of coercion, an excuse 
to intimidate and to hoodwink the public, and the officials are 
always the sole judge of any grievance a man might have, whether 

imaginary or not I am sure organized labor of this 

region still considers the plan as a dual organization, a sort of 
organization launched to replace a bona fide organization." 

This official encloses a diagram showing on the one hand the ave- 
nues of appeal under the company's plan, by which men with grievances 

131 



must make appeal in person or through their representative, who must 
be equipped with the ability to combat with the highly trained officials 
of the company, and on the other hand, what would be the course of 
appeals under the unions' organization through union officers "who no 
doubt are more competent to combat with the different officials of the 
company/' Another high union official says : 

It is, in our judgment, paternalistic in its operation, and 
denies to the employees that independence of action which they 
must have if perfect satisfaction and co-operation are to prevail. 

The machinery by which the ■ Company's plan is put into 

effect is in the hands of the corporation itself I am 

reliably informed by our representatives .... that much 
dissatisfaction prevails among the men employed ..... and that 
very little interest is taken by them in the plan of co-operation. We 
claim that it is not satisfactory because it does not give the men 
justice. In the first place, the plan is headed by the president of 
the company. He is the sole dictator, he says what must be done ; 
or in other words we claim there is no change in the system of 
bargaining as between the men and the company, except it was not 
in writing before and is now. Of course they have their commit- 
tees now and did not before, but to our minds, and I am posi- 
tive I can prove it, the committees are powerless. I further want 
to state a thing that happened when this thing was first put into 
operation. The company allowed the members to vote as to 
whether they would accept said plan or not. At one plant . . . 
the men voted three times on the plan, and the first two times 
they rejected it. The third time they were given a space of time 
to think it over, and during that space the company got busy 
through their superintendent and boss and told the men they had 
better vote to accept the plan, because if they didn't the company 
would shut down. The results would have been in this place that, 
as most of the men own their property, they would lose all they 
had. The result was that through this kind of domination the 
men accepted the will of the company. I do believe this company 

would have made good their threat Of course the 

company claims their plan is a success, which it is to them. As 
the employee has found out he cannot get justice, and because of 
that fact he will not take his troubles up under that plan. The 
men at the present time consider their patriotism above quarrelling 
over that plan, but I predict that just as soon as the war is over 
you will hear that the men are rebelling against that plan. 

I could sit and write for days as to what organized labor 
thinks of the plan, but I consider it enough to say that organized 
labor will fight any autocratic plan, as we are for Democracy., 

132 



pure and simple. The plan is not democratic because it was 
drawn up by the interests and was afterwards forced upon the 
men. 

The President of the Company on the other hand writes : 

I know that I can safely say that from the standpoint of 
employees, as well as the officers of the Company, it (the plan) 
is stronger today and regarded with much more favor than at any 
time in the past; indeed, employees by the score have expressed 
themselves to myself and other officers of the Company as feeling 
that it has established and insures a more intimate and demo- 
cratic relation between employer and workman than in their 
judgment existed any place else, or than they had thought could 
be possible. 

I think the success of the plan has been due largely to the 
fact that we have continuously encouraged and recognized the 
committees provided for in the plan, not only in connection with 
conciliating differences but in improving the general working and 
living conditions at the places of employment. 

These opinions are not here reproduced with the idea of judging 
the case in any way whatever, but merely to show what the attitudes 
are which the movement for co-operative management must expect to 
encounter. 

There is clear indication that some of the committee plans estab- 
lished in this country have been set up with the intention of forestalling 
any effort toward union organization of the plant. This does not mean 
that the plans will not be successful, even to the point of leading event- 
ually to general organization of the industry along the lines of the 
Whitley recommendations. The result will depend very largely upon 
the degree to which real democracy prevails — that is. to the extent 
that the invisible hand of company control is removed from the com- 
mittees — and upon the company's willingness to treat squarely and 
frankly with the men. Above all, the company must avoid discrimina- 
tion against union men, and will do well to avoid even the appearance 
of it. One ambitious works council plan recently organized is already, 
at present writing, perilously near the rocks. The union employees 
elected most of the members of the committees. Soon after, the com- 
pany laid off a thousand men in one of its plants, because of the closing 
of the war. A large proportion of the men released are said to be 
union members. The unions are now charging that the company seeks 
to victimize the union men because they are in a large majority on the 
committees. 

It is evident that the committee plan has to make its way as best 
it can against the current of special interests on both sides and the 

133 



deplorable lack of confidence which the industrial history of our 
country generated. 

If we could for the moment forget the issues raised by unionism 
and anti-unionism, and look at the situation in a single plant taken by 
itself, we could pass judgment on the committee plan by itself, apart 
from the confusing issues and conditions which now beset it. From 
English experience, from the experience of certain American firms 
which have had works committees for various periods of time and 
from our knowledge of industrial phychology, we cannot but conclude 
that the committee plan represents an essential step toward industrial 
democracy and toward a more solidly founded industrial peace and 
efficiency than we now have, so far as the industrial plant is concerned. 
This, it may be said in passing, seems to be the growing opinion in 
both England and America. 

Now, if a non-union plant establishes a system of committees, and 
the system is successful, as just noted, what effect will it probably have 
on organized labor and the probability of the future establishment of 
national joint industrial councils of employers' associations and trade 
unions in the industry? If the committees are used to keep out the 
unions, the unions will watch them with an eagle eye, and the 
employees will have an under-current of distrust. If the company 
plays perfectly square — paying the union scale, giving union con- 
ditions of work, allowing the committees real freedom and responsi- 
bility within their sphere, the plan may have continued success at the 
cost of preventing for the time being the organization of the whole 
industry. But gradually all parties concerned will lose their conflict- 
attitude, the co-operative or collective tendency will broaden to include 
both employees and employer, and the way open easily to the extension 
of organization and peaceful collective bargaining to the whole indus- 
try, in a system of works committees and industrial councils along the 
lines recommended by the Whitley Committee. Thus at the best, 
works committees in non-union plants may pave the way to under- 
standing and co-operation between capital and organized labor both of 
which will have been led to a new spirit of moderation and co-opera- 
tion. At the worst, committees in firms now dead set against organized 
labor cannot make the spirit much worse than it is. If the unions 
are excluded anyhow, they will do well to let the men in the plant get 
what they can. If the committee system fails to give the men satis- 
faction they will in the long run turn to the unions; if it does give 
satisfaction we may hope that the new spirit developed will lead to a 
wider co-operation. 

Desirability of building on a union basis where possible — Turning 
to establishments already strongly, if not wholly, unionized, it should 
be clear that any committee system established should so far as possible 

134 



be built on already existing union basis — and should work in close 
co-operation with the unions. As a prominent labor official has 
recently remarked, the average hand worker feels safer if he has a 
representative to take up his grievance who cannot be "reached" or 
victimized by the employer. This trustworthy representative he at pres- 
end finds — under favorable conditions— in the business agent of his 
union. 

The business agent — If the business agent is not too pugnacious 
and irreconcilable in temperament, he may have even larger 
opportunity for usefulness with a committee than without one. 

The business agent represents his union in all the plants of his 
district. He cannot be as intimately in touch with conditions in each 
plant as a committee of employees in the plant would be. Moreover 
there are matters of detail which he ought to be freed from and which 
can better be attended to by the secretary of the committee. 

Where shop and works committees are formed, especially if based 
on departmental rather than craft lines, the business agent will have 
to revise his methods and submit to some modification of his powers 
and point of view. He will still remain the chief medium of communi- 
cation between the rank and file of union membership and the union's 
local, but the men themselves will settle many matters within the shop 
which before went to the union office. This will occasion some read- 
justment and doubtless some misgiving on the part of union men, but 
it will in the long run afford opportunity for the union officials to give 
more time to the larger questions of their trade, and relieve them from 
consideration of the small routine which can be handled just as well, if 
not better, by the men themselves through the plant committees 

The British Ministry of Labor in its Report on works committees 
gives careful consideration to the relations which the committees are 
to bear to the unions. Naturally the questions involved in England are 
somewhat different from those which will come up in this country, 
yet the matter is so important that the conclusions of the English 
investigators should be given careful attention. The Report points 
out that a new machinery for collective bargaining must be set up, 
since the questions for which this machinery is required are to a large 
extent peculiar to each establishment, and collective bargaining, if it is 
done at all, must be carried through in each establishment. At the 
same time this intra-plant bargaining must be in accord with trade 
union standards ; consequently the unions will gradually develop more 
positive functions within the works. 1 It is to be expected that certain 
difficulties will be encountered, among them the determination of what 
is a general and what a special matter, conflict of authority between 

1 See Works Committees, pp. 37-42. 

135 



the works committee and the local union, and the fact that members 
of the works committee will be responsible also to many different 
unions. The question of the right of trade union officials to attend 
works committee meetings will also arise. On the other hand certain 
advantages may be looked for. The works committee should prove a 
valuable asset in the settlement of jurisdiction disputes and in general 
should prove an avenue through which more friendly and firm under- 
standing can be had between the local union officials and the employers. 

The proof of a pudding is in the eating of it. If American 
employers see that co-operative management, where introduced, is 
actually successful in securing industrial peace and promoting efficiency, 
and if organized labor finds in it nothing inimical to the interests uf 
the workmen, it will have a large development here as well as abroad. 
The extracts from letters given in Appendix V throw a little light on the 
possibilities of success. Thus far the evidence would seem to indicate 
that where works committees have been given a fair and intelligent 
trial they have fully justified the experiment. 

The results of a well-organized industrial representation plan, 
which "recognizes the unions," are stated by a well-known firm as 
follows : 

During the past four years, this company has concerned itself 
very deeply in developing its relations with its employees. Labor 
disturbances brought keenly to our attention the necessity of 
having the good will of the workers in order that we might 
maintain and preserve the good will of our customers and insure 
the stability of our business.. 

We are glad to give an outline of our experience, believing it 
has yielded results in the form of certain principles of policy and 
action, which may be helpful in the promotion of industrial peace. 

In making this statement we are particularly concerned that 
the formal and external features of our plan shall not be confused 
with the real and vital substance of the arrangements, to the 
neglect of the spirit and of the principles which are in reality 
responsible for whatever progress we have made. 

After an opportunity of several years to study causes and 
effects, we are convinced that the prime source of difficulty was a 
lack of contact and understanding between our people and our- 
selves. The failure to adjust petty grievances and abuses became 
the cause of irritation entirely disproportionate to their importance 
when taken singly, but which in accumulation became the main 
ground for complaint. 

There was no special complaint against the hours of work, 
which were fifty-four per week, and which have since been reduced 

136 



to fifty-two. The physical working conditions were good and in 
fact very far advanced compared with the general conditions in 
the industry. There was a general demand for higher wages, but 
we have always looked upon this as an accompanying demand 
rather than a first cause of difficulty. 

The unexpected and indirect results of our labor policy in 
increasing the efficiency, reforming the conduct, and raising the 
intelligence of the executives coming into contact with the system 
have been as profitable and satisfactory as the direct result, i. e., 
the creation of harmony and good will on the part of the people 
toward the company. 

A summary of the essentials of the system which has pro- 
duced such gratifying results in our institution would include : a 
labor department, responsible for industrial peace and good will 
of the employees, thereby of necessity fully informed as to their 
sentiments, their organizations, and really representing their 
interests in the councils of the company ; a means for the prompt 
and final settlement of all disputes; a conviction in the minds of 
the employees that the employer is fair and that all their interests 
are safeguarded; constant instruction of the leaders and people 
in the principles of business equity, thus gradually evolving a code 
accepted by a 1 l parties in interest, serviceable as a basis for adjust- 
ment of all difficulties ; the development of efficient representation 
of the employees — honest, painstaking, dignified, reasonable, eager 
to co-operate in maintaining peace, influential with their people 
and truly representative of their real interests ; a friendly policy 
toward the union so long as it is conducted -in harmony with the 
ethical principles employed in the business and an uncompromising 
opposition to all attempts to coerce or impose upon the rights of 
any group or to gain an unfair advantage ; and a management that 
guarantees every man full compensation for his efficiency and 
prevents anyone receiving anything he has not earned. 

Briefly expressed, it is simply the natural and healthy relation 
which usually exists between the small employer and his half 
dozen workmen, artificially restored, as far as possible in a large- 
scale business where the real employer is a considerable group of 
executives managing thousands of workers according to certain 
established principles and policies. 1 

The conclusion of the Ministry of Labor investigators with regcird 
to the results of English experience is as follows : 

1 From statement prepared by Hart Schaffner & Marx for hearing before the 
Federal Industrial Relations Commission, 1914. 

137 



In more than one works the summary of opinion on a works 
committee — and that not on one side only, but on both — has been 
expressed in the phrase, "This is the best thing that has ever 
happened in the shop." Such a summary could not be given if 
experience had not proved that a w r orks committee was more than 
a piece of machinery and something different from the old methods 
of industrial conciliation. It means that a works committee is felt 
to be something vital and something new — something that enlists 
the workers in real participation, and something that offers fresh 
promise for the future. 1 

Works Committees, p. 47. 



138 



Chapter VI. Conclusion 



If we want industrial peace we can have it. If we want industrial 
efficiency we can have it. But we must want these things enough to 
pay the price ; and the price is that we shall lay aside some of our self 
assertive individualism and some of our class consciousness, get rid 
of our conflict-attitudes and subordinate our pugnacious instincts. If 
we want democracy in industry we can have it — and unless much of 
our talk about democracy is to be open to the charge of insincerity, we 
must desire some form of industrial democracy — but to get it we must 
develop a new machinery and acquire a new spirit. 

The Whitley Committee recommendations for works committees 
and joint standing industrial councils show a possible and probably 
practical method by which industrial self-government, and through it 
an approximation to justice and good will between employer and 
worker, can be attained without a transformation of the whole indus- 
trial and social system and the introduction of some type of socialism. 

We have indicated how seriously the movement for co-operative 
management is taken in England and how rapid the progress it appears 
to be making. Letters from American firms and labor officials, as well 
as the sentiments and opinions expressed in various industrial and 
reconstruction conferences, show that this country is also rapidly 
awakening to a recognition of the significance of the movement. 

We have shown in some detail, not only the questions involved in 
the organization and functioning of works committees, but also the 
difficulties in the way of co-operative management here — the conflict- 
attitude of American employers and employees, and the lack of a well- 
rounded organization, in trade unions and employers' associations, of 
American industries. Because primarily of this last fact it has not 
seemed probable that the Whitley (or similar) recommendations for 
national industrial councils would at once find application in the United 
States, and for this reason the preceding pages have dealt very largely 
with works committees, i. e., with co-operative management in indi- 
vidual plants, in which subject employers and labor representatives 
are showing a lively interest. 

The Second Report of the Whitley Committee, dealing with indus- 
tries not fully organized, has point for American readers chiefly in so 
far as it suggests the difficulties of starting any comprehensive plan of 
co-operative industrial management in this country. Works committees 
are given prominence as an essential part of the Whitley plan, but 

139 



there is indication that the British Government — the Ministry of 
Labor, at least — has placed most stress on the national and district 
councils as representative bodies of the different industries. In all the 
public and semi-public pronouncements on industrial reconstruction in 
England the chief emphasis is placed on the industry as a whole, 
and works committees appear as only a part, though an important part, 
of a broad plan of re-organization. 

Unfortunately, we have in this country thus far paid singularly 
little attention to the problems of industrial reconstruction and no 
centralized government study of the problems which are bound to arise 
has yet been instituted. We are sure to need, even more than England, 
representative bodies in each industry, like the Whitley national indus- 
trial councils, but few have had the temerity to suggest their establish- 
ment here. 

It is possible that, so far as co-operative management makes 
headway in this country, it will do so from below, rather than from 
above, as in England. A long preparation, and the development of a 
new psychology' in the works, through shop and works committees, 
may be necessary before we shall be ready for national industrial 
councils in many industries. There are already, however, a few indus- 
tries which are sufficiently well-organized to warrant the belief that 
the establishment of national councils in them would not be an insur- 
mountable task. Among these are the stove industry, anthracite and 
bituminous coal mining, and the clothing industries. It might prove 
unfortunate, from the standpoint of peace and democracy in an 
industry as a whole, for its separate plants, especially if they were 
few, large, and powerful, to organize isolated industrial representation 
schemes. The outcome of this procedure might be that the employers 
in the whole industry would be organized, or at least able to maintain 
mutual understanding as to industrial and commercial policies, while 
the employees would be segregated into plant organizations with no 
central council, at least so long as the international unions of the various 
crafts remained unrecognized. On the other hand, it is entirely possible 
that these separate plant industrial representation systems might lead 
to union recognition and to collective bargaining on an industry-wide 
scale, and open the way to the formation of national joint industrial 
coucils. 

There are those who hold that American labor is no more ready 
than American capital. "The American does not relish regulation and 
regimentation. He is too near the pioneer stage of development . . . 
The hard, stubborn fact is that the average American wage-worker is a 
conservative and an opportunist." 1 This is doubtless in a measure true, 
yet the recommendation of the Executive Committee of the American 

1 Victor S. Yarros, in the Nation, October 5, 1918, p. 373. 

140 



Federation of Labor should be remembered. If organized labor can 
be convinced that works committees and industrial councils do not 
mean a limitation, but an extension, a broadening, and a humanizing 
of collective bargaining, there is no reason to suppose that it will not 
be heartily in favor of it. 

Has the war produced any frases from which industrial councils 
could naturally develop? Thought turns at once to the various war 
labor adjustment boards, but only to turn away in doubt. These boards 
have performed a remarkable service during the war in maintaining 
industrial peace and continuity of production under conditions which 
might early have produced widespread industrial strife. In this task 
they have had the effective co-operation of the officials of the interna- 
tional unions as well as that of the employers. But they are Govern- 
ment boards, their members do not all belong to the industries con- 
cerned, and their functions have been limited to the settlement and 
prevention of disputes, often in a way — necessary under the circum- 
stances — amounting to compulsory arbitration. The authority which 
the boards, by reason of their function, have had to exercise has 
naturally produced some restlessness, especially on the part of 
employers, and a desire to free industrial relations from governmetnal 
interference at the earliest practicable moment. The mere fact that 
the task of the boards has been limited to adjustment of wage condi- 
tions renders it doubtful whether they could give much assistance in 
the formation of joint national industrial councils, the functions" of 
which would be wider and almost entirely of a different nature. It 
would be unfortunate were the erroneous idea to gain currency that the 
chief function of industrial councils is to be the making of contracts 
between employers and employees. This point is given emphasis by 
the Industrial Reconstruction Council : 

If the individualistic manufacturer must widen his range of 
vision to the conception of a trade as a whole, in which labor is 
interested jointly with capital, the idea that an industrial council 
is a new name for a kind of glorified conciliation board or wages 
board must also completely disappear. Its objects are not limited 
to the settlement of wage differences. Nothing needs be said 
against conciliation boards or similar bodies . . . but today, to 
use a famous phrase of Burke, men's minds are being irresistibly 
drawn to a higher conception of the part which Labor and Capital 
can jointly play in shaping and controlling the industry of the 
future. 1 

Nevertheless it may be suggested that the members of the various 
war labor adjustment boards, as well as the industrial relations 

1 Trade Parliaments, why they should be formed and how to form one in your trade, 
p. 4. (London, no date.) 

141 



divisions of the various Government production departments should 
exert their influence toward securing the calling of national joint con- 
ventions of employers and representatives of labor in the great staple 
industries with view to establishing joint industrial councils. 

In the Pacific Northwest, the fine work of the Loyal Legion of 
Loggers and Lumbermen seems already to have paved the way for a 
joint industrial council for that lumbering district, but the creation of 
a national council in the lumbering industry as a whole would involve 
a great variety of sectional problems and interests. Possibly the very 
size of the country will be one obstacle in the way of the establishment 
of national councils, but inasmuch as most manufacturing is centered 
in the northeastern states, the difficulty need not be serious. 1 

It is not to any existing organizations or bodies, whether govern- 
mental or otherwise, that we are to look for the basis of the formation 
of national industrial councils. We shall find it, the rather, in the new 
spirit made possible by the necessity for industrial peace and unity 
during the war. Generally speaking, although there have been here 
and there what seemed unreasonable demands and pig-headed stubborn- 
ness on one side or the other, labor and capital have buried the hatchet 
— not deep perhaps, but still buried — and put their shoulders to the 
wheel of production. There are indications that labor and capital 
understand each other better than they did two years ago, and both 
sides show a tendency to grasp the fact that co-operation and a square 
deal will accomplish both a greater output and more justice than will 
antagonism and conflict. The seemingly universal acceptance of the 
principle of the living wage laid down by the National War Labor 
Board, the adoption of the basic eight-hour day by the Lnited States 
Steel Corporation, and the establishing of industrial representation 
plans in several large plants hitherto not known to be especially friendly 
to organized labor are significant indications that a new spirit is mov- 
ing among employers. There is reason to hope that organized labor 
will meet the employers half way. It would be a matter for keen 
regret if the new spirit of co-operation fostered by the exigencies of 
war-time production were left to fade away and American industry 
lapse back into the old time conflict-psychology. 

The advantages which properly organized works committees may 
be hoped to bring have been sufficiently explained. The Whitley* Com- 
mittee, the Industrial Reconstruction Council, the Garton Foundation, 
and other bodies have set forth the functions and advantages of indus- 
trial councils, with varying emphasis. While it is not the purpose of 
this survey of co-operative management to go into the broader and 
more far-reaching aspects of the matter, a brief summary of the 

1 Another difficulty which will be encountered, should the council movement develop, 
will be found in the indefinite limits and overlapping of some industries. It is not necessary 
to discuss this, however. The well-defined industries will naturally be organized first. 

142 



broader functions of industrial councils in relation to the economic 
situation at large may not be amiss. 

It has already been pointed out that the councils would differ 
greatly from the wage conferences with which large scale collective 
bargaining has made us familiar. Collective bargaining has had the 
advantage that it is collective, the disadvantage that it is a bargaining — 
a fixing of terms of sale. While it cannot be said that all bargaining 
or contracting elements would necessarily be omitted from the func- 
tions of industrial councils, the contracting function, if present at all, 
would be subordinate. In a collective bargaining conference each side 
tries to get as many concessions as it can out of the other. In an 
industrial council both sides join to get as much harmony, efficiency, 
and productivity as they can for the industry. Such "bargaining" as 
is done is done for the good of the whole. 

To this end the first function of a council is to provide an organi- 
zation and a procedure, and to foster a state of sentiment, which will 
lead to dependable good feeling and active co-operation between 
employers and employees. As the works committees give the workers 
some opportunity to see the problems which are always confronting 
the managers, and the managers a chance to get an intimate understand- 
ing of the needs and ideas of the men within individual plants, so the 
industrial councils would do for the whole industry. Doubtless for 
some time to come many employers will hesitate to lay their cards on 
the table where their employees can see them — in some cases profits 
are too high, and in others the employer is having to struggle to keep 
afloat. The secrets of the individual business, however, would not 
have to be revealed. The common interests of the industry constitute 
the field of the councils' functions. If labor and capital can bring 
themselves to work for the interest of the industry, and within it, live 
and let live, gauging their expectations as to the level of wages and 
profits upon the state of the industry, there is good reason to suppose 
that no legitimate interest will suffer injustice. 

Moreover, just as works committees are supposed to give some 
outlet for the instinct of self-expression for the workers in the plant. 
the councils might be expected to enlarge the view of the workers' 
representatives and give them a chance to serve the industry as well as 
the interests of a particular part of it. In other words, the workmen 
would come to feel that they have a direct stake in the industry as a 
whole, along with the employers. An industrial statesmanship of a 
new type could in time be expected to result, embodying the principles 
of democracy and industrial efficiency, and motivated by the real 
interest which the workers would develop in the larger administration 
of industrial affairs. 

143 



In the long run it is entirely possible that industry so organized 
would need, and would ask for, less governmental regulation than is 
now necessary and expected. Industrial self-government in a double 
sense — self-government in the industry and of it would develop. This 
would tend to relieve the legislatures and Congress of a considerable 
portion of the great mass of questions they now have to handle, not 
always successfully because of lack of expert knowledge. 

Both the Whitley Committee and Mr. Roberts, in his October 
letter, suggest the desirability of having a representative body in each 
industry with which the Government could confer, when necessary, 
upon matters concerning the industry. It is not necessary to point 
out what a boon it would have been, both to the Government and to 
industry itself had national joint industrial councils been in existence 
in this country during the war. As it was, the various government 
departments, from the President down, had to consult labor and capital 
separately, or at best in hastily arranged conferences. Even these 
would have been difficult to secure but for the American Federation 
of Labor and the machinery which the international union officials 
had at hand. 

One other matter, which may become a very important function 
of the councils, is the determination of commercial policy, with special 
reference to price regulation. Much of the English literature on co-op- 
erative management mentions the need of industrial harmony and 
solidarity to the end that a united front may be put up in foreign com- 
petition. Not too much need be made of this point. But if the indus- 
tries of any country are going to organize to capture foreign markets, 
that organization should give labor an. effective voice. Allusion w r as 
made above to the action of the photo-engraving firms of New York 
City in accepting and publishing a price-list made up by the workers. 
According to report, the prices charged for photo-engraving had been 
chaotic, unreasonable competition which counted not the cost was 
prevalent, and the natural result had been that wages failed to rise in 
proportion to the cost of living. In other words, the workers had to 
suffer for the cut-throat competition and the failure of the employers 
to install accurate cost accounting. Whatever profit the employers may 
have reaped, the consumers were in effect subsidized by the workers. 
The case is parallel to what naturally happens in an intense competition 
for foreign markets. Emplovers are under constant temptation to 
attempt to reduce expenses by cutting down wages. The net result 
is that the foreign consumer is subsidized by the American workman. 

The National War Labor Board early in the war issued a state- 
ment of principles. Among them was the one declaring that the worker 
is entitled to a wage sufficient to maintain himself and family in health 

144 



and comfort 1 The workers may well ask why the worker is not 
entitled to a "living wage" in peace as well as in war. The National 
Consumers' League and other associations have long protested against 
the existence of industries which cannot pay their way. Constitutional 
difficulties stand in the way of minimum wage legislation for men. 
Even were this not the case it would be better for the industry itself 
to establish and maintain a living wage. By regulating competition, 
standardizing patterns and methods, adoption of scientific cost account- 
ing, and refusal to sell below costs, this can be done. The consumer 
must pay his way. The employer has no right to pass the costs of 
competition down to the worker, rather than pass the costs of produc- 
tion on to the consumer. Joint industrial councils, therefore, are 
desirable in connection with foreign trade, for two reasons: First, 
they will make for the necessary co-operation and efficiency ; second, 
they will put the workers in position to guard against the danger that 
prices will be cut to the foreign consumer at the expense of American 
wage standards. 

Enough has been said to indicate that the establishment of joint 
industrial councils and works committees means a new spirit and a 
new method in industry. Neither employers nor workmen should rush 
precipitately to adopt suggestions involving so radical a change of 
viewpoint and relations. It is not likely that they will do so. Educa- 
tion is necessary on both sides, and the introduction of industrial 
representation, or co-operative management, whether in the individual 
plant or in the industry as a whole should be carefully thought out 
beforehand. Each plant and each industry has its own peculiar cir- 
cumstances to which the new plan must be adapted, and for which no 
one, certainly no one not conversant with the inner life of the plant 
or the industry itself, can lay down general rules capable of universal 
application. It should be noted, however, that co-operative manage- 
ment cannot be successfully imposed from above. And labor and 
capital can educate each other to co-operation by beginning to 
co-operate. 

It will be understood that whatever recommendations or sugges- 
tions have been made in these pages, either with regard to industrial 
councils or, in more detail, to works committees, are suggestions only. 
Only in comparatively large plants will all, or most of. the functions 
allotted to works committees actually be exercised. Smaller plants will 
have to organize their committees and assign functions according to 
their particular needs. The spirit and organization — or lack of it — is 
such in American industry that we probably cannot look forward to the 

1 "1. The rigrA of all workers, including common laborers, to a living wage is hereby 
declared. 

2. Tn fixing wages, minimum rates of pay shall he established which will ensure the 
subsistence of the worker and his family in health and reasonable comfort. "' 

145 



early creation of joint standing national councils for industrial self- 
government, but there is no great obstacle to the gradual introduction of 
works committees in industrial plants. The strong movement in Eng- 
land and the rapidly developing sentiment in this country for co-opera- 
tive management indicate a growing perception of the part which 
mutual understanding and good- will play in the development of that 
will-to-do and that unity of purpose in industry, which must come to 
be the standard and the ideal of the productive unit, employer plus 
employees. 



146 



Appendix I 



MODEL CONSTITUTION OF A JOINT INDUSTRIAL 

COUNCIL 
(Recommended by the Ministry of Labor, Circular H. Q. 7A) 

(From United States Bureau of Labor Statistics, Monthly Labor Review, Aug. 1918, pp. 78,79.) 



1. Membership 

The council shall consist of members, appointed as to one half by 

associations of employers and as to the other half by trade unions. 

Associations of employers : 

Number of 
Repre se ntati ves 

(1) 

(2) 

(3) 

etc. 

Total 

Trade Unions: 

(1) 

(2) 

(3) 

etc. 

Total 

2. Reappointment 
The representatives of the said associations and unions shall retire annually, 
and shall be eligible for reappointment by their respective associations and 
unions. Casual vacancies shall be filled by the association concerned, which shall 
appoint a member to sit until the end of the current year. 

3. Committees 
The council may delegate special powers to any committee it appoints. The 
council shall appoint an executive committee and may appoint such other stand- 
ing or sectional committee as may be necessary. It shall also have the power to 
appoint other committees for special purposes. The reports of all committees 
shall be submitted to the council for confirmation except where special powers 
have been delegated to a committee. 

4. Coopted Members 
The council shall have the power of appointing on committees or allowing 
committees to coopt such persons of special knowledge not being members of the 
council as may serve the special purposes of the council, provided that so far 

147 



as the executive committee is concerned: (a) The two sides of the council 
shall be equally represented, and (b) any appointed or coopted members shall 
serve only in a consultative capacity. 

N. B. — It is desirable to take power to appoint representatives of scientific, 
technical, and commercial associations upon committees and subcommittees of 
the council, and the above clause would give this power. 

5. Officers 

The officers shall consist of a chairman or chairmen, a vice-chairman, a 
treasurer, and a secretary or secretaries. 

(1) The chairman. 

N. B. — The Whitley Report suggests that the appointment of a chairman or 
chairmen should be left to the council, who may decide that there should be (i) 
a chairman for each side of. the council, (n) a chairman selected from the 
members of the council (one from each side of the council), (Hi) a chairman 
chosen by the council from independent persons outside the industry, or (iv) a 
chairman nominated by such persons or authority as the council may determine, 
or, failing agreement, by the Government. 

(2) Secretary. 

The council shall be empowered to maintain a secretary or secretaries and 
such clerical staff as it may think fit. 

All honorary officers shall be elected by the council for a term of one year. 

6. Meetings of the Council 

The ordinary meetings of the council shall be held as often as necessary 

and not less than once a quarter. The meeting in the month of shall 

be the annual meeting. A special meeting of the council shall be called within 

days of the receipt of a requisition from any of the constituent 

associations or from the executive committee. The matters to be discussed at 
such meetings shall be stated upon the notice summoning the meeting. 

7. Voting 
The voting both in council and in committees shall be by show of hands 
or otherwise as the council may determine. No resolution shall be regarded 
as carried unless it has been approved by a majority of the members present 
on each side of the council. 

8. Quorum 

The quorum shall be members of each side of the council, 

9. Finance 

The expenses of the council shall be met by the associations and trade 
unions represented. 

10. Relation of a Joint Industrial Council to the Government 

It is desirable that there should be intimate and continuous touch between 
the industrial councils and the various Government departments interested, not 
only to secure prompt attention from the right officials, but also to obtain in- 
formation as to what other councils are doing. To meet this need, the Ministry 
of Labor has, at the request of the Government, set up a special section dealing 
with industrial councils. 

148 



Where any industrial council so desires, a civil servant with the necessary 
experience will be assigned the duties of liaison officer by the Ministry of Labor. 
He will act only as and when required and in a purely advisory and consultative 
capacity, and will be available when desired for any meetings of the council. 

By this means similarity of method and continuity of policy in the various 
industrial councils will be assured, and the experience and proposals of one 
council will be available for all the others. 

11. District Councils and Works Committees 
It will be necessary for the council when formed to consider the necessary 
arrangements for district councils and works committees if the conditions of 
the industry are such as to require them. Obviously existing local conditions 
and existing organizations will have to be taken into account and the variety 
of such conditions make it difficult to suggest any draft constitution which 
would be of value. The Ministry of Labor will, however, be glad to supply 
examples of existing schemes and other information at their disposal. 



149 



Appendix II 



REBUILDING TRADE— AN OLIVE BRANCH TO LABOR 

(From the London Times, Oct. 10, 1917.) 



An important manifesto on industrial reconstruction which has just been 
issued bears the signatures of more than 40 well-known business men and 
university professors, and of a still larger number of officers of trade associa- 
tions. The manifesto has also the support of the editors of some 70 trade 
and technical journals. The scheme outlined in the manifesto is put forward 
as the practical outcome of all the authoritative suggestions that have been made 
during the last three years for the organization of our industries and the develop- 
ment of our trade and commerce. 

Concerning the need of industrial reconstruction the signatories say that 
to meet the urgent needs of the times it will be necessary to increase consider- 
ably our efforts to develop our industries on the following lines : — 

(1) The mobilization of each industry for common action. 

(2) A greater degree of co-operation between manufacturers. 

(3) Co-operation between labor and capital and the avoidance of industrial 

strife. 

(4) A more complete association between scientific institutions and traders. 

(5) Education better adapted to our commercial needs. 

(6) Each industry to be studied as a whole, and freed from unnecessary 

internal competition. 

(7) Every trade to present a united front to foreign competition. 

(8) Output regarded as a duty by both capital and labor. 

(9) Encouragement by the Government of the activities of traders, with a 

minimum of interference. 
(10) It is contended that the matter cannot be left to chance, and that some 
national scheme is necessary which shall ensure the securing of these 
objects. It is, therefore, suggested: — 

(a) That a national organization, on lines such as those suggested by the 
Whitley Report, should be established, which will retain all the sterling qualities 
of our present individualistic system and add to them the necessary ordered 
force to ensure greater activity. 

(b) That such an organization will need to provide for the representation 
of all classes of persons engaged in a given industry. 

(c) That industry should, therefore, be enfranchised, and every man and 
woman, employer and employed, given a vocational or trade vote by means of 
which this representation would be effectively realized. 

(d) That every citizen should have the right to register with some approved 
trade association or trade union, and thus an industrial or vocational register 
properly classified would be produced. 

150 



(e) That trade councils should be elected in each industry from the trade 
associations and the trade unions. Such councils, elected upon a truly repre- 
sentative basis, would be able to speak in the names of the whole of their 
respective industries. 

(/) That all questions as between the Government and a given trade should 
be delegated to the council of that trade, who would have powers to deal with 
them. 

(g) That questions of output, education, trade schools, scientific research, 
export, wages, profits, markets, tariffs, etc., should be settled in each trade by 
the council of that trade, and national funds spent upon these matters dispensed 
through the trade councils. 

Finally, the manifesto puts forward under six headings a scheme for 
industrial reconstruction. It is suggested that the basis of the scheme should 
be a vocational franchise, which would make possible the organization of each 
trade separately under a trade council composed of capital and labor, and the 
decentralization of a large proportion of national work now attempted by 
Government Departments. The Government, it is proposed, should establish 
a department to promote or encourage trade, and the first function of this 
department should be to create representative trade councils in every trade. 
It should be assisted by an advisory council, consisting of the chairmen of all 
the trade councils, and should comprise special departments for export and 
tariffs, industrial and scientific research, commercial education, statistics and 
finance, welfare, and exhibitions and advertising. 

Generally, the scheme involves the establishment of a complete new system 
of trade government comparable to our existing system of local government, 
with a Ministry at the head with powers similar to those of the Local Govern- 
ment Board, controlling numerous trade councils, with powers comparable to 
those of existing county councils. It recognizes the essential principle that 
industrial interests should be grouped by trades and not by localities. 

The manifesto, signed, as it is, largely by manufacturers and officers of 
employers' associations, is described definitely as an olive branch to labor. It 
invites the workers cordially to join with the management in the self-government 
of industry, and offers them an equal status and responsibility, on the controlling 
body. 

Among the signatories are : — 

Lord Henry Cavendish-Bentinck, M. P., Sir W. Priestly, M s P., Sir Edward 
Brabrook, Sir Herbert Bartlett, Sir James Heath, Sir Wilfred Stokes, Sir 
Charles Macara, Dr. A. P. Newton, Professor Ripper, Sir Charles H. Bedford, 
Professor T. H. Beare, Sir John Benn, Professor Dickser, Professor Fleming, 
Dr. E. H. Griffiths, Professor Kirkaldy, Sir Inglis Palgrave, Professor Miles 
Walker, and many others. 



151 



Appendix III 



AGREEMENT BETWEEN ENGINEERING EMPLOYERS' 

FEDERATION AND TRADE UNIONS IN 

GREAT BRITAIN 

(From United States Bureau of Labor Statistics, Monthly Review, March, 1918, pp. 84, 85.) 



In the latter part of 1917 a serious strike of airplane workers occurred at 
Coventry, England, in which the matter of the appointment and functions of 
shop stewards became acute. An agreement was finally entered into between 
the Engineering Employers' Federation and the trade unions concerned, the 
text of which, taken from the London Morning Post of December 24, 1917, is 
given herewith. It appears that the Amalgamated Society of Engineers, the 
Scientific Instrument Makers' Union, and the Enginemen's Union did not 
subscribe to the terms, their representatives not being present when the settle- 
ment was drawn up, but it is understood by the Engineering Employers' Federa- 
tion that the two last-mentioned unions are willing to agree to the settlement, 
although the Amalgamated Society of Engineers still remains outside. The 
agreement covering regulations regarding the appointment and functions of shop 
stewards is as follows : 

With a view to amplifying the provisions for avoiding disputes it is agreed : 

1. The workmen who are members of the above-named trade unions, 
employed in a federated establishment, may appoint representatives from their 
own number to act on their behalf in accordance with the terms of the 
agreement. 

2. The representatives shall be known as shop stewards. 

3. The method of election of shop stewards shall be determined by the 
trade unions concerned, and each trade union parties to this agreement may 
appoint shop stewards. 

4. The names of the shop stewards and the shop or portion of a shop in 
which they are employed and the trade union to which they belong shall be 
intimated officially by the trade union concerned to the management on election. 

5. The shop stewards shall be subject to the control of the trade unions, 
and shall act in accordance with the rules and regulations of the trade unions 
and agreements with employers so far as these affect the relation between 
employers and work people. 

6. In connection with this agreement shop stewards shall be afforded 
facilities to deal with questions raised in the shop or portion of a shop in 
which they are employed. In the course of dealing with these questions they 
may, with the previous consent of the management (such consent not to be 
unreasonably withheld) visit any other shop or portion of a shop in the estab- 
lishment. In all other respects they shall conform to the same working condi- 
tions as their fellow-workmen. 

152 



7. Employers and shop stewards shall not be entitled to enter into any 
agreement inconsistent with agreements between the Engineering Employers' 
Federation or local associations and the trade unions. 

8. The function of shop stewards, so far as they are concerned with the 
avoidance of disputes, shall be exercised in accordance with the following 
procedure : 

(a) A workman or workmen desiring to raise any question in which 
he or they are directly concerned shall in the first instance discuss the same 
with his or their foreman. 

(b) Failing settlement, the question shall, if desired, be taken up with 
the management by the appropriate shop steward and one of the workmen 
directly concerned. 

(c) If no settlement is arrived at the question may, at the request of 
either party, be further considered at a meeting to be arranged between 
the management and the appropriate shop steward, together with a deputa- 
tion of the workmen directly concerned. At this meeting the organizing 
district delegate may be present, in which event a representative of the 
employers' association shall also be present. 

(d) The question may thereafter be referred for further consideration 
in terms of the provisions for avoiding disputes. 

(e) No stoppage of work shall take place until the question has been 
fully dealt with in accordance with this agreement and with the provisions 
for avoiding disputes. 

9. In the event of a question arising which affects more than one branch 
of trade or more than one department of the works the negotiation thereon 
shall . be conducted by the management with the shop stewards concerned. 
Should the number of shop stewards concerned exceed seven a deputation shall 
be appointed by them, not exceeding seven, for the purpose of the particular 
negotiation. 

10. Negotiations under this agreement may be instituted either by the 
management or by the workmen concerned. 

11. The recognition of shop stewards is accorded in order that a further 
safeguard may be provided against disputes arising between the employers and 
their work people. 

12. Any questions which may arise out of the operation of this agreement 
shall be brought before the executive of the trade union concerned or the 
federation, as the case may be. 



153 



Appendix IV 



A NONUNION COLLECTIVE BARGAINING PLAN 

BY BORIS EMMET, PH.D. 

(From United States Bureau of Labor Statistics, Monthly Labor Review, August, 1918, 

pp. 180-184.) 



The collective bargaining plan described in this article is given because 
it represents an interesting and instructive example of what may be called 
"nonunion collective bargaining." By this term is meant the collective bar- 
gaining between an employer and his own employees without the intervention 
of any union outside the establishment. The establishment whose collective- 
bargaining scheme is here described is a Middle Western firm manufacturing 
women's ready-to-wear clothing and having about 700 employees, chiefly women 
and girls. The three years' operation of the plan has resulted in putting on 
a collective basis the wage bargaining of the establishment, as well as hours of 
labor, discipline, discharges, and adjustment of grievances. 

Nature of the Plan 

Under the scheme there are three separate bodies, known, respectively, as 
the senate, the cabinet, and the house of representatives. The senate and the 
cabinet, both of which represent the interests of the firm, were created simul- 
taneously in June, 1914. The organization of the employees, termed the house 
of representatives, was created one year later. 

The members of the senate are salaried employees directly connected with 
the planning of the work of the institution, namely, heads of departments, their 
assistants, superintendents, and their assistants. Application for memberhip 
must be submitted in writing to the secretary of the senate after the applicant 
has secured the indorsement of the firm and of at least one member of the 
senate. A majority vote of the members present is required for election. 
Membership ceases upon termination of employment with the company. Each 
member of the senate has one vote. By a two-thirds vote of the members 
present the rules and regulations governing the deliberations may be amended. 
Regular meetings are held once a week, but special sessions may be convened 
whenever occasion arises. The officers of the senate are a president, vice- 
president, treasurer, secretary, and sergant-at-arms, all elected by the member- 
ship for a term of one year. 

The members of the house of representatives are elected from among those 
employees of the company who have been in continuous service for at least six 
months. This qualification is at present relatively unimportant for the reason 
that four-fifths of the employees of this company have been in its service 
more than six months. The representatives are elected by popular vote of the 
employees, in the ratio of 1 representative for every 15 employees, but each 
department, however small, has at least one representative. Each member 
of the house has one vote. The officers of this organization include a president, 
vice-president, treasurer, secretary, and sergeant-at-arms, all elected by popular 
vote. Elections are held regularly twice a year, during the first weeks of 
February and August. Regular meetings of the employees' representatives are 

154 



held every other Tuesday and special meetings may be called whenever necessary. 
The rules of procedure of the body may be attended by a two-thirds vote of its 
membership. 

The cabinet consists of members of the executive board of the company, 
and has the final word in all matters referred to it by the joint action of the 
house and senate. Members of the cabinet may attend the meetings of either 
the senate or the house, but have no power to vote. Unless especially requested, 
however, members of the firm do not, as a rule, attend any of the sessions of 
the representative organizations of the employees. 

The jurisdiction of the house and senate is unlimited. These bodies are 
privileged to discuss and act upon any proposition that may affect the interests 
of the employees and the firm. A proposition may originate in either house, 
but must also be referred to the other house for discussion and action there. 
In case of disagreement in the decisions reached the disputed points are referred 
to a joint conference committee consisting of an equal number of representa- 
tives of both organizations. The conference committee endeavors to reach some 
mutually satisfactory compromise, and usually succeeds. The compromise is 
then submitted to the cabinet for approval. As a matter of actual practice, 
propositions agreed to by both houses in the manner indicated above are usually 
assented to by the firm. 

Under the provisions of the scheme there are a number of standing com- 
mittees consisting of an equal number of representatives from both organiza- 
tions. The most important of these are the betterment committee, which hears 
complaints and adjusts grievances, and the welfare committee, which deals with 
matters affecting the general comfort and welfare of the employees. There are 
many other committees, mostly of minor importance, such as a committee on 
appropriations, in charge of expending the funds annually appropriated by the 
company 1 for entertainments, athletics, etc., a program committee for entertain- 
ments, and a fire-drill committee. New committees are created whenever 
necessity arises for handling special questions. 

A discharged employee has the right to refer his case to the betterment 
committee. If the decision of the betterment committee is not satisfactory to 
the employee, he may file a notice to that effect with the "professional" secretary 
of the house of representatives and the senate. The latter two organizations 
then select a board of review consisting of five persons, two selected by the 
senate, two by the house, and the fifth by mutual consent of both organizations. 
The majority decision of the board is final. The board has full power over 
discharge cases and may reinstate any employee who, in its opinion, was wrong- 
fully discharged. The company, however, specifically reserves the right to 
lay off employees on account of lack of work, and a lay-off, even when in effect 
equivalent to a discharge, is not subject to the jurisdiction of the board. 

By a special resolution adopted April 1, 1918, a permanent wage committee 
was created. This committee is composed of one member selected by the em- 
ployees of each factory department and one employee chosen to represent the 
office and clerical force of the firm. The functions of this committee, as defined 
in the resolution, are as follows: (1) To recommend and pass upon general 
changes in wages ; (2) to suggest and pass upon minimum and maximum rates 
to be paid for the various operations according to skill involved, length of 

1 For the purpose of maintaining the social activities of its employees the company sets 
aside annually about $800. This amount does not include the salary of the so called "'•pro- 
fessional'' secretary who is an employee of the company having in charge the executive and 
clerical work incidental to the operation of the bargaining scheme, such as keeping the record 
of the proceedings, calling meetings, etc. 

155 



service, and steadiness in attendance; (3) to sit with the factory planning 
board, composed of the superintendents, for the purpose of passing upon indi- 
vidual increases in wages ; and (4) to receive complaints of individuals to whom 
increases were denied. 

Actual Workings of Plan 
That this collective bargaining scheme has been of benefit to the employees 
may be seen from the list presented below, enumerating some of the more 
important matters dealt with and adjusted collectively, as well as from the brief 
account given later of the changes in wages during the last 18 months. 

Ordered that raw materials be sold to employees at cost plus 15 

per cent Apr. 23, 1915 

Ruled that no freight be carried on elevators between 7.15 and 7.45 

a. m. and 11.30 a. m. to 12.15 p. m Feb. 22, 1916 

Ordered that 1 week's vacation with pay be granted to those in 

service 1 year or longer Apr. 25, 1916 

Introduced a 48-hour week June 16, 1916 

Ordered that 2 weeks' vacation with pay be granted to those in 

service more than 3 years May 20, 1916 

Decided that, whenever possible, promotions be made from rank 

and file Sept. 19, 1916 

Employed a "professional" secretary for the house and senate ....Jan. 10, 1917 

Granted increases in wages of 5 and 10 per cent Jan. 23, 1917 

Formulated rules of procedure to govern a board of review to 

handle discharges Jan. 10, 1917 

Decided that the positions of enlisted men be held open for them. May 29, 1917 

Granted an increase in wages of 5 per cent .June 20, 1917 

Agreed to readjust wages in accordance with the changes in the 

cost of living Jan. 23, 1918 

Created a permanent committee to deal with wage questions Apr. 17, 1918 

In these days of advancing prices the attention of employees is centered 
on the question of wages. Since the beginning of 1917 the question of wages 
has been the subject of freqent discussions of the representative bodies. The 
procedure of arriving at wage changes was somewhat as follows: The workers, 
feeling the need of larger incomes, usually called a meeting of their repre- 
sentatives and by resolution instructed them to make certain demands for 
increases in wages. The matter would then be taken up at the next meeting of 
the house for the purpose of arriving at a definite figure. As a rule, the house, 
being more familiar with the general conditions of business, modified con- 
siderably the demands of its constituents. The figure agreed upon by the house 
would then be referred to the senate. The latter, after detailed discussions and 
informal conferences with the management, then arrived at some decision. In 
cases of disagreement the matter went through the regular procedure of refer- 
ence to a joint conference committee and then to the firm which, in the great 
majority of instances, approved the compromise arrived at by the joint con- 
ference committee. 

On January 29, 1917, an "increase of 10 per cent, was granted to employees 
with a continuous record of service of one year or more, and of 5 per cent, 
to those in service less than one year. On June 20, 1917, an additional all- 
round increase of 5 per cent, was given. 

In the early part of December, 1917, the representatives of the employees, 
in view of the still mounting cost of living, submitted a demand for an additional 

156 



all-round wage increase of 10 per cent. 1 The matter was referred to the 
senate, where it was discussed at great length. The opinion prevailing in the 
senate was "that inasmuch as it would not be right to ever cut wages, it might 
be unwise to grant increase after increase, as the cost of living rises, if such 
raises are made permanent, * * * but that temporary raises as long as this 
high cost of living remains on the same level, or goes up, as necessary. In 
view of the difference in the viewpoints of the house and the senate the subject 
was referred to a joint committee which was instructed to work out some 
equitable method for the adjustment of wages to the rising cost of living. The 
action of this committee was announced on January 9, 1918. It suggested that 
periodic (monthly) changes in wages be made in accordance with the changes 
in the prices of commodities. A resolution to this effect was passed and subse- 
quently approved by the firm. In accordance with this resolution, the company 
on January 23 made the following announcement : 

The company believes there is justice in the suggestion that the wages 
of the employees be readjusted in accordance with the higher cost of living. 
It wishes to meet the suggestion by paying a separate high-cost-of -living 
envelope to each employee once a month. This envelope will contain an 
amount of money which will represent the average increased cost of living 
to each employee. 

This amount will be figured by using Bradstreet's index figures as a 
basis. These index figures represent an average of the prices of 96 articles 
used in everyday life. As the prices change, these index figures change, 
so that they are a fair measure of the increase in the cost of living. These 
figures have been used by Bradstreet's since 1904 and are recognized all 
over the United Sattes as being impartial and reliable. 

As these monthly index figures are not available until the 15th of the 
month the index figures of November the 1st will be taken instead of 
December 1st, and this November the 1st figure will be continued to be used 
as a basis. Therefore, the high-cost-of-living envelope for December will 
be the percentage of difference between the index figures of November the 1st 
and December the 1st. The high-cost-of-living envelope for January will be 
the difference between November the 1st and January 1st, and so on. This 
payment will be made on the second Tuesday of every month. 

The company does not obligate itself to continue this payment in- 
definitely, and as soon as circumstances arise that make this payment 
unnecessary or impossible to maintain the employees will be advised through 
the house of representatives of this fact. 

This new wage arranged was to be retroactive to December, 1917, when the 
wage demand of the employees was presented. Since the date of the announce- 
ment, the following percentages of the regular earnings of the employees have 
been paid as cost-of-living bonuses : For the month of December, 1917, 5 per 
cent.; January, February, and March, 1918, 6 per cent.; and April, 1918, 8 per 
cent. 

1 The following is an extract from the proceedings of the meeting of the house of repre- 
sentatives held on Dec. 4, 1917, at which the demand for an increase in wages was decided 
upon: 

Mr. K, of the cutting department, then made a motion that the firm be asked to grant 
a 20 per cent increase in wages to all employees because of the great increase in the cost 
of living. 

This did not meet with favor from some other members, and Mr. S. then made a 
motion to amend it to read 10 per cent instead of 20 per cent. The amendment was carried. 

In the discussion which followed, house members showed that living expenses have 
gone up since last June; that they believed that the firm was square and therefore they 
wanted to be square, too; that they believed that, with the increased cost of material and 
overhead expenses, 20 per cent was too much to ask for in fairness; but that, because of 
conditions at present, they considered it fair to ask that the firm grant a 10 per com increase. 

This motion to ask 10 per cent increase was carried with but 3 voting against it. 

157 



Appendix V 



WORKS COMMITTEES AND OTHER INDUSTRIAL REPRE- 
SENTATION PLANS IN OPERATION IN AMERICAN 
ESTABLISHMENTS, TOGETHER WITH OPINIONS 
ON WORKS COMMITTEES 

(Chiefly from letters and other documents direct from the various concerns.) 



Concerns With Committees — Experience Favorable 



THE ACME WIRE COMPANY, New Haven, Conn. 

This company has recently formed a shop committee consisting of one 
representative from each department and one member appointed by the manage- 
ment. This is one of the committees for patriotic purposes recommended by 
the Secretary of the United States Department of Labor. 

"My own view as to the shop committee is that it is the only rational way 
to obtain from a body of workers as a whole, an expression of their point 
of view, and that any management making the decisions affecting the employees 
who does so without knowing their point of view, is working in a mental dark- 
ness, which is not only dangerous, but sure to cause trouble sooner or later. . . 
I know of no other way of obtaining all the facts concerning the labor problem 
than by appealing to the workers through such a committee, to state the facts 
in their possession." — Mr. L. S. Tyler, Vice-President. 

AMERICAN ROLLING MILLS COMPANY, Middletown, Ohio. 

"The union to which the members of the sheet and jobbing mill department 
belong is the Amalgamated Association of Iron, Steel and Tin Workers of 
North America, and the local lodge in our plants has a membership of about 
750. We have always gotten along exceptionally well with the members of 
this organization, and it has been a source of great satisfaction to us that 
since the United States got into the great world war the members of this 
organization have co-operated with us in a most wonderful way and have done 
everything in their power to back up the war program of the Government. 

"In 1904, when the writer was assistant general superintendent of our plant, 
and we then had only four sheet mills and the union only a membership of 
about 120, I asked the lodge to elect a committee of seven of its members to 
co-operate with me in an advisory capacity. This plan has been in operation 
ever since and the committee has at times been a wonderful help in transmitting 
the views of the management to the men, and I believe that it has been very 
largely responsible for the fact that we have not only never had a strike, but 
no situation has even approached such a serious point as to lead us to believe 
that there would be a strike. 

158 



"Where the men are organized I think this plan can be operated very 
successfully, but where the men do not belong to an organization and are not 
responsible to an organization made up of their fellow-workmen, I doubt the 
success of the committee plan as a regular policy. The success of a committee 
scheme depends almost entirely upon the personnel of the committee and the 
personality of the individual or individuals who represent the company in 
conferences with the committees. 

"The writer has given the majority of his time during the past several 
years to handling the problems of organization of our plants, and has used 
every opportunity that has presented itself to get committees of the workmen 
to assume responsibility and to assist in an advisory capacity. 

"I have seen one superintendent attempt to work the committee plan and 
utterly fail, while on the other hand I have watched with great satisfaction the 
excellent results secured by another superintendent in another department 
through the operation of the committee plan. The reason for the failure in 
one case and success in the other was entirely because one did not understand 
and the other did understand the workers' psychology. 

"There is no doubt in my mind but that eventually industry is going to 
see that it is very much to its best interests to standardize wages as far as 
possible, and that plants will see that they must secure a differential in cost 
as between plants through more efficient methods, and not because they are able 
to hire their men at a lower rate than the other plant. I think this will naturally 
lead to a consideration of wage matters and working conditions by committees 
of the men and management. 

"I would not hesitate for a moment to recommend the establishment of 
such a plan as a policy of co-operative action between employers' representatives 
and representatives of employees on matters of mutual interest, provided that 
the employees' committee in each instance could be made to see that their work 
was not that of a grievance committee, but that they were appointed for the 
purpose of considering, in a co-operative spirit, all matters of mutual interest. 
I have seen the committee plan fail miserably because the workers' representa- 
tives considered that their one and only job was to continually kick for more 
wages and shorter hours, regardless of the consequences to the individual 
establishment." — Mr. Charles R. Hook, Vice-President. 

THE BROWNING COMPANY, Locomotive Cranes, Cleveland, Ohio. 

Experience' — "I feel as though I were merely on the threshold of getting 
at a satisfactory solution of the problems ahead of us, therefore, really should 
not speak to any one with great conviction as to the ultimate outcome of my 
schemes; however, certainly the men's meetings, started about a year ago, have 
done no harm and I feel they are doing a great good. The men certainly would 
not give them up and no meeting occurs without some constructive thought 
developing. 

"The meetings started with the enclosed notice. We have since increased 
them to two a month, the first and third Monday afternoon at three o'clock. 
Representatives of both the day and night forces, one man from each depart- 
ment, meet in my office with the superintendent, no foremen present. We talk 
of everything and sometimes nothing of interest develops. I have sat in several 
directors' meetings that were just as uninstructive. 

"Since last June when I announced our profit-sharing plan, a copy of which 
is herewith enclosed, I find myself in a much better position to saturate the 

159 



men with the idea of loyalty to the property owners, because under our profit- 
sharing plan 'the men are geuinely interested in the success of the company, 
whereas, before, whenever I preached to them in their meetings they must have 
said "that is all very fine, but what do we gain." The election of representatives 
to our men's meeting is so arranged that there are some new men in every 
meeting. This gives every man in every department a chance to be heard in 
about a year and a half." — Mr. Sheldon Cary, President. 

employees' meeting 

"On Monday, November 5th, 1917, we want one man from each of our 
seventeen departments of the entire shop, day and night force, to come together 
at 3 o'clock in the sales manager's office. 

"Aside from your representatives, Mr. Cary and Mr. Stalley will be present. 

"You are to make your own selection as to representatives. 

"Each month a different man can be selected, if you so desire. 

"Minutes of the meetings will be typewritten and posted on the bulletin 
board to inform each one of you all of important and interesting facts developed 
by an open talk about your job and how you can strengthen your condition and 
that of the company for our mutual benefit." — The Browning Company 
(Sheldon Cary, President) . 

November 25, Mr. Cary gave the following additional information in regard 
to the committee : 

"We have had several meetings since I wrote you and if anything, I think 
they are getting more helpful. This is due, I believe, to the fact that our profit- 
sharing scheme is soaking in. I get this from many different angles and many 
of the men have stated to me their appreciation of the profit-sharing check 
and have also stated that they have noticed that there is not as much waste of 
material and time around the shop. I have no w r ay of verifying this as yet, but 
do not at all doubt that a large percentage of the men are taking much more 
interest in their work, because they have a belief that by doing so they will 
make more money. 

"When all is said and done that one feature of making more money is the 
essential for the property owner to keep in mind, and it is just a question of 
how that extra money is distributed that is of prime importance." 

BETHLEHEM SHIPBUILDING CORPORATION, LTD., Sparrow's Point 
Plant. 

July 25, 1918 (Final Copy) 

REPRESENTATION OF EMPLOYEES 

To the Employees of the Bethlehem Shipbuilding Corporation, Ltd. 
Sparrow's Point Plant: 

On June 11, 1918, the Company received a signed petition from employees 
requesting authorization to elect from their number Representatives to deal and 
co-operate with the Management in carrying out the present shipbuilding pro- 
gram, and to facilitate ways and means for the ready adjustment of all matters 
arising for settlement. 

The Company considered the proposal and decided, in view of the helpful 
spirit evidenced by the employees, to accept the suggestion, and accordingly 

160 



prepared the attached plan embodying all of the features asked for by the 
petitioners. 

In order that the plan approved by the Company would have the support 
and co-operation of all employees, a general meeting of Department Repre- 
sentatives was called on Thursday, July 25, when the plan was explained and 
accepted. 

The following employees were present at the conference: (Here follows 
list.) 



Representation of Employees 



Article I 
Object 

The objects in inaugurating Representation of Employees are: 

(a) To co-operate with the Government of the United States in its policy 

to insure continuous and uninterrupted service in shipbuilding. 

(b) To promote and maintain just and harmonious relations between the 

Company and its employees. 

(c) To expedite the settlement of any matters requiring adjustment. 

(d) To further efficiency and production and improve the general working 

conditions of the Plant. 

Article II 
Basis of Representation 

Employees shall be entitled to elect from among their number duly author- 
ized Representatives on the basis of representation by trades and departments 
as herein set forth : 

(a) For each department with less than 300 employees, one Representative. 

(b) For each department with from 300 to 1,000 employees, two Repre- 

sentatives. 

(c) In a department of over 1,000 employees, one Representative for every 

500 employees. 

2. In the following departments which have more than one Representative 
there shall be elected one Representative for each of the trades as indicated : 

S Department: (1) Riveters, (2) Bolters, (3) Chippers and Caulkers, (4) 

Drillers, (5) Reamers, (6) Fitters, and (7) Erectors. 
T Department: (1) Loftsmen, (2) Plate and Shape Yard, (3) Shopmen. 
H Department: (1) Wood Caulkers, (2) Ship Carpenters. 
D Department: (1) Coppersmiths, (2) Plumbers and Pipe Fitters. 

The basis of election as herein provided is tentative only and may be 
modified later on by joint consent of the Maaagement and Representatives. It 
has been framed with regard to existing organizations within the industry, and 
will, it is believed, prove generally satisfactory. In such matters experience 
alone is the only sure guide. 

For the first election the quota of Representatives, which is based on the 
distribution of employees by departments as of June 15, shall be as follows : 

161 



DEPARTMENT NUMBER OF EMPLOYEES REPRESENTATIVES 

S 3259 7 

T 824 3 

M 584 2 

Y 490 2 

H 335 2 

D 324 2 

Q 274 1 

C 271 1 

N 228 1 

B 220 1 

L 195 1 

P 165 1 

J 151 1 

E 134 1 

R 96 1 

W 54 1 

O 45 1 

Z 14 1 

A 300 1 

Article III 
Term of Office 

Election of Representatives shall be held semi-annually. One-half the 
number of Representatives shall be elected at each semi-annual election. Repre- 
sentatives shall hold office for one year. 

Provided, however, That at the first election the full number of Representa- 
tives shall be chosen ; and 

Provided further, That prior to the date fixed for the semi-annual election 
following the first election one-half of the Representatives chosen at the first 
election shall be selected for retirement in such manner as may be determined 
by the majority vote of the Representatives. 

Representatives whose term of office has expired, or who may have been 
retired as herein provided, shall be eligible for re-election. 

The employee receiving the second highest number of votes in the depart- 
ment in which he is a candidate shall be the alternate Representative and will 
act only in case of the absence of the regular Representative. 

Article IV 
Recall and Vacancies 

Any Representative shall be recalled on written request of the majority of 
the employees of a department. A vacancy occurring from any cause shall be 
filled by a special election to be conducted forthwith in a manner similar to that 
of the general election. 

Article V 
Right to Vote 

The right to nominate and to vote for Representatives shall be restricted to 
employees who have been two months in the service of the Company prior to the 
dates fixed for Nomination and Election respectively. 

Provided, however -, That in the case of the first election any employee who 
has been in the service of the Company for one month prior to the date fixed 
for the Nomination of Representatives shall be permitted to vote. 

162 



Article VI 

Nomination and Election 

(a) Nomination and election shall be by sealed ballot. 

(b) Balloting shall be controlled by tellers. For each Representative to be 

elected there shall be three (3) tellers, two of whom shall be named 
by the employees' Representatives, and one by the Management. In 
the case of the first election' the tellers for the employees shall be 
chosen by a committee representative of the employees of each 
department. 

(c) Representatives shall be so nominated and elected that representation 

by departments and by trades as herein above specified shall be 
assured. 

(d) Balloting for Nomination of Representatives shall be held on a Friday, 

and election of Representatives on the Tuesday following. Except 
in the case of the first election provided for as above, the day of 
nomination shall be the second Friday in the months of January 
and July, respectively, unless otherwise determined by joint consent 
of the Representatives and the Management. 

(e) On the day of nomination each employee qualified to nominate shall be 

furnished with a blank ballot on which he shall specify two names 
as his choice to represent his trade in the department in which he 
is employed. 

(/) From the names as specified (in e) the tellers shall, from each trade, 
select for each Representative to be appointed the three names 
oftenest specified. The employees whose names are thus selected 
shall be the candidates for election as Representatives. 

(g) On the day of election (the Tuesday following the nomination) each 
employee qualified to vote shall be furnished with a ballot on which 
shall be printed the names of the persons nominated to represent 
each of the trades in the department in which he works. On this 
ballot each employee shall cast his vote for Representatives accord- 
ing to trades as herein set forth, to the number of Representatives 
to which his department is entitled. Having regard to the different 
trades in each department, the persons receiving the highest num- 
ber of votes shall be elected. 

Article VII 
Organisation 

(a) After each semi-annual election the Representatives shall immediately 

meet for the purpose of electing a Chairman and Secretary from 
among their number, and for selecting Committees. 

(b) The following Committees shall be appointed by the Representatives: 

1. Wages and Piece Work Schedules. 

2. Working Conditions and Hours. 

3. Health, Safety and Sanitation. 

4. Housing and Living Conditions. 

5. Transportation. 

6. Education and Publications. 

7. Entertainment and Recreation. 

163 



Each Committee shall be composed of five (5) members, three (3), includ- 
ing its Chairman, to be appointed from among the Representatives, 
and two (2) from among employees other than Representatives. 
No Representative shall serve on more than one Committee. 

By joint consent of the Representatives and the Management the member- 
ship of any Committee may be reduced or increased, or any two or 
more Committees may be combined for purposes of joint conference 
with officials of the Company or for any other reason. 

(c) The Company shall provide a suitable place for meetings of Repre- 
sentatives and Committees and for joint conferences with the 
Management, and upon request of the Representatives shall pro- 
vide such clerical assistance as may be required. 

Article VIII 
Meetings 

Regular Meetings of the Representatives and also of each of the Committees 
shall be held at least once every month. 

The regular meetings of the Representatives shall be held at 3 P. M. on the 
first Wednesday of each month. The regular meetings of the Committees shall 
be held at the same hour during the intervening weeks on dates to be arranged 
between the Representatives and the Management. 

Special Meetings of the Representatives and of the Committees may be held 
as occasion may require on the joint approval of the officers of the Repre- 
sentatives and the Management. 

For time spent during working hours, Representatives or members of Com- 
mittees necessarily occupied at regular meetings or at special meetings or con- 
ferences jointly approved shall be paid by the Company at their regular rate 
of pay. Expenses incident to the Representation of Employees authorized and 
approved jointly by the Representatives and the Management will be paid by 
the Company. 

Article IX 

Joint Committees 

On alternate months the Committees shall meet as Joint Committees with 
Company officials to be named by the Management. On such Joint Committees 
the Company officials may equal, but shall not exceed in number, the employees' 
Representatives. 

Article X 
Matters for Adjustment 

Any matter requiring adjustment shall in the first instance be referred by 
employees to the Foreman, and failing satisfactory adjustment shall then be 
referred to the Superintendent. If satisfactory adjustment is not obtained in 
this way, employees, either in person or through one or more of the Repre- 
sentatives of their department, may take the matter up for adjustment with the 
Head of the Service Department. Should the Head of the Service Department 
fail to effect an adjustment within a reasonable time, the matter may be brought 
through one of their number to the attention of the Representatives assembled 
at a regular or special meeting, and if the meeting is of the opinion that it 
should be further considered the Representatives shall notify the Management 
accordingly and shall name two of their number to act with the Chairman of 
the Representatives as members of a Joint Committee of Adjustment to which 

164 



the matter shall be referred. The notification from the Representatives to the 
Management as herein provided shall be in writing, and shall specify the facts 
which in the opinion of the Representatives constitute the matter requiring 
adjustment and warrant its presentation to the Joint Committee of Adjustment. 
The Joint Committee of Adjustment shall be composed of the three Repre- 
sentatives thus selected and an equal number of Company officials to be named 
as Representatives of the Management, within three days of receipt by the 
Management of the names of the Representatives selected. The Joint Com- 
mittee of adjustment thus formed shall immediately convene and endeavor to 
adjudicate the matter, and shall be at liberty to adopt any course of procedure 
which in its judgment is best calculated satisfactorily to effect this end. 

.Article XI 
Matters of Interest 

Representatives are at liberty at all times to discuss with the Head of the 
Service Department, either upon their own initiative or at the request of any 
employee, any subject of interest in the operation of the shipyard or of concern 
to the employees. 

To insure the discussion of such questions, and the maintenance of just 
and harmonious relations, the Head of the Service Department shall interview 
the Representatives of each department at least once a month to find out 
whether there are any subjects meriting discussion or matters requiring 
consideration. 

Article XII 

Publicity 

A Monthly Bulletin shall be published as a means of communication be- 
tween the Management, the employees, the stockholders and the public on matters 
of mutual interest and of special concern to employees. 

A Bulletin Board shall be located in a convenient place in the Plant for 
the posting by the Service Department of matters of interest to employees. 

Article XIII 
Membership in Organisations 

Representation of employees as herein provided for shall not in any way 
abridge the right of any employee to membership in any organization. 

BETHLEHEM STEEL CORPORATION, Bethlehem, Pa. 

PLAN OF EMPLOYEE REPRESENTATION 
(From Iron Age, October 24, 1918.) 



The full text of the pamphlet issued by the company outlining its new plan 
is as follows : 

I. — Representation 
1. Representation shall be on the following basis: 

Plants employing* under 1,500 employees: One representative for each 100 
employees. 

Plants employing 1,500 to 10,000 employees : One representative for each 
200 employees. 

Plants employing over 10,000 employees : One representative for each 300 
employees; 'provided, however, that in no case there shall be less than 10 
representatives. 

165 



Such adjustments as may be necessary to meet special cases shall be made. 

2. For the purpose of applying the unit of representation, the plants should 
be subdivided according to departments and natural subdivisions. Wherever 
it is necessary to group a number of small departments in order to complete a 
unit of representation, regard shall be had to logical groupings and location. 

3. Adjustments in units of representation shall be made in accordance with 
the recommendations of the Committee on Rules. 

II. — Terms of Representatives 

1. Representatives shall be elected for a term of one year, and shall be 
eligible for re-election. 

2. A representative may be recalled upon the approval by the Committee 
on Rules of a petition signed by two-thirds of the voters in his department. 

3. A representative shall be deemed to have vacated office upon severance 
of his relations with the company or upon his appointment to such a regular 
position as would bring him within the meaning of Paragraph 3, Section 3, 
entitled "Qualifications of Representatives and Voters." 

4. Vacancies in the office of representative may be filled, in the discretion 
of the Committee on Rules, by special elections conducted in the same manner 
as the general elections. 

III. — Qualifications of Representatives and Voters 

1. Any employee who has been on the company's pay rolls for a period 
of six months prior to nominations, who is 21 years of age and over, and who 
is an American citizen or has taken out his first papers, shall be considered 
qualified for nomination and election as a representative. 

2. All employees who have been on the company's pay rolls for a period 
of at least sixty (60) days prior to the date fixed for nominations, and who 
are 18 years of age or over shall be entitled to vote; provided, however, that 
in the case of the first elections, thirty (30) days on the company's pay rolls 
shall suffice. 

3. Company officials and persons having the right to hire or discharge shall 
not be eligible as representatives or qualified to vote for representatives. 

IV. — First Nominations and Elections 

1. Each division or department shall select a committee of the workmen 
who shall conduct the first nominations and elections in the manner prescribed 
herein. 

2. At the first elections the full number of representatives shall be elected, 
one-half of whom shall serve until the second stated semi-annual election there- 
after, and one-half of whom shall retire at the first stated semi-annual election. 
The method of retirement of representatives shall be arranged by the Joint 
Committee on Rules. 

V. — Nominations and Elections After the First Nominations and Elections 

1. Nominations and elections shall be held semi-annually, in the months of 
October and April respectively. 

2. Nominations shall be held on the second Monday, and elections on the 
following Friday, of the months named. In the event of either of these days 
being a holiday, the day immediately following shall be substituted. 

166 



3. One-half of the total number of representatives shall be chosen at each 
semi-annual election. 

4. The nominations and elections (after the first nominations and elections) 
shall be conducted by the employees themselves, in accordance with rules and 
regulations prescribed by the Committee on Rules, with only such assistance 
from the management as may be required by the Committee on Rules. 

5. There shall be three persons nominated for every person to be elected. 

6. Nominations and elections shall be by secret ballot, and so conducted 
as to avoid undue influence or interference with voters in any manner whatso- 
ever, and to prevent any fraud in the counting of ballots. 

7. On the day of nominations, each duly qualified voter shall be furnished 
with a ballot stating the number, of persons for whom he is entitled to vote, on 
which he shall write the name of the persons in his department whom he desires 
to nominate as representatives. 

8. A voter may place in nomination twice the number of representatives 
to which his department is entitled. 

9. If on any ballot the same name is placed in nomination more than once, 
it shall be counted but once. 

10. Should the number of persons nominated on any ballot exceed the per- 
mitted number as stated on the ballot, the ballot shall be void. 

11. Those who have received the largest number of votes up to three times 
the number of representatives to be elected shall be declared nominated, and 
shall be candidates for election. 

12. On the day of elections, each duly qualified voter shall be furnished 
by the Committee on Rules with a ballot on which the names of the candidates 
shall be printed in alphabetical order. The voter shall indicate his preference 
by placing a cross (X) opposite the names of the candidates of his choice. 

13. Candidates to the number of representatives to which a department or 
subdivision is entitled may be voted for and this number shall be stated on the 
ballot. If this number is exceeded, the ballot shall be void. 

14. Each voter shall deposit his own ballot in a box provided for the 
purpose by the Committee on Rules, and the ballots shall be counted under the 
direction and supervision of said committee. The candidates receiving the 
highest number of votes shall be declared elected. 

15. In the event of a tie, seniority in the company's employment shall 
determine the choice. 

16. In the event of a controversy arising concerning any nomination or 
election, it shall be referred to and decided by the Committee on Rules. 

17. The Committee on Rules may make such provision as they may con- 
sider necessary for assisting any voter, who may so request, in properly marking 
his ballot. 

VI. — Management's Representative 
The company shall appoint a management's representative. 
The management's representative shall keep the management in touch with 
the representatives, and represent the management in negotiations with the 
representatives, their officers and committees. He shall respond promptly to 
any request from representatives, and shall interview all of the representatives, 
from time to time, but not less frequently than once every month, with reference 
to matters of concern to employees, and report the result of such interviews to 
the management. 

167 



VII. — Committees 

1. After each semi-annual election, the representatives shall immediately 
meet for the purpose of electing a chairman, secretary, a General Committee, 
and Committee on Rules, and for selecting members of such other committees 
as are found necessary by the Committee on Rules for the consideration of the 
following subjects: 

Rules. 

Ways and Means. 

Safety and Prevention of Accident. 

Practice, Methods and Economy. 

Employees' Transportation. 

Wages, Piece Work, Bonus and Tonnage Schedules. 

Employment and Working Conditions. 

Housing, Domestic Economies and Living Conditions. 

Health and Works Sanitation. 

Education and Publications. 

Pensions and Relief. 

Athletics and Recreation. 

Continuous Employment and Condition of Industry. 

2. There shall be a General Committee to consider all matters not falling 
within the scope of any other committees herein provided for and the chairman 
and secretary of the representatives shall be members of the General Committee. 
This committee when jointly composed shall act as a Committee on Appeals. 

3. Each committee shall be composed of five members, and shall appoint 
its own chairman and secretary. 

4. Vacancies on committees shall be filled at a regular meeting of the 
representatives. 

5. Joint committees shall consist of the committees of the employees' 
representatives with the addition of the company's representatives named by 
the management, who may equal but shall not exceed in number the employees' 
representatives. 

6. The joint committees shall select their own officers and arrange their 
own procedure, subject to appeal, in case of controversy, to the Joint Committee 
on Rules. 

7. Wherever the word "committee" is used throughout this instrument, it 
shall mean the separate Committee of Employees' Representatives unless a "joint 
committee" is specified. 

VIII. — Committee Meetings 

1. Regular meetings of committees shall be held once a month. 

2. On alternate months, the committees shall meet as joint committees. 

3. Committees shall meet between the hours of 3 and 5 in the afternoon, 
unless otherwise arranged for on joint approval of the chairman of the employees' 
representatives and the management's representative. 

4. Special meetings of committees and of joint committees may be held 
as occasion may require, on approval of the chairman of the employees' repre- 
sentatives and the management's representative. 

5. For time necessarily occupied in actual attendance at regular meetings 
or at special meetings of conferences jointly approved, representatives shall 
receive from the company payment commensurate with their average earnings. 

168 



6. Representatives shall have the right to appear before and be heard 
by a committee on any matter of concern to the employees of the department 
they represent. 

7. A committee, when concerned with matters of special interest to any 
particular department or class of employees, shall have the right of inviting into 
conference the representatives of the employees and of the management likely 
to be specially interested in such matters. 

8. Any matter may be referred by the management through the manage- 
ment's representative to any committee for consideration and report, and any 
matter may be presented by a committee to the management through the manage- 
ment's representative. 

9. The Joint Committee on Rules shall arrange a suitable place for meet- 
ings of the representatives, and- of the several committees and joint committees, 
and the company shall defray such expenses as are necessarily incident to the 
discharge of duties herein set forth, when approved by a majority of said 
committee. 

IX. — Annual Conference 
An annual conference between all of the employees' representatives and 
representatives of the management shall be held at a time and place determined 
by the Joint Rules Committee, who shall be in charge of the procedure at such 
conference. 

X. — Procedure for Adjustments 

1. Any matter which in the opinion of any employee requires adjustment, 
and which such employee has been unable to adjust with the foreman of the 
work on which he is engaged, may be taken up by such employee, either in 
person or through any representative of his department. 

First — With the superintendent of the department. 

Second — With the management's representative. 

Third — With one of the superior officers of the company, who shall endeavor 
to effect a settlement, or who may with the approval of all the parties refer 
the matter to any Joint Committee. 

2. Unless a satisfactory disposition of any such matter has been effected 
within a reasonable time, any employee through his representative, or the 
management through the management's representative, may require such matter 
to be referred to the General Joint Committee on Appeals by a request in 
writing addressed to said committee, specifying in detail the matter requiring 
adjustment and the reasons which warrant its consideration by said committee. 
The General Joint Committee on Appeals shall consider any such matter with 
reasonable promptness, at a regular or special meeting, and may adopt such means 
as are necessary to asceratin the facts and effect a settlement. 

3. If the General Joint Committee on Appeals fail to effect a satisfactory 
settlement, the president of the company shall be notified and the matter may 
be referred, if the president and a majority of the employees' representatives 
on the General Joint Committee agree to such reference, to an arbitrator or 
arbitrators, to be determined at the time according to the nature of the 
controversy. 

XI. — Guaranteeing the Independence of Representatives 

It is understood and agreed that each representative shall be free to dis- 
charge his duties in an independent manner, without fear that his individual 

169 



relations with the company may be affected in the least degree by any action 
taken by him in good faith in his representative capacity. 

To insure to each representative his right to such independent action, he 
shall have the right to take the question of an alleged personal discrimination 
against him, on account of his acts in his representative capacity, to any of the 
superior officers, to the General Joint Committee and to the president of the 
company. 

Having exercised this right in the consecutive order indicated and failing 
a satisfactory remedy within thirty days, a representative shall have the further 
right to appeal to the State. Department of Labor or the Secretary of Labor 
of the United States. The company shall furnish the said Secretary or the said 
State Department of Labor with every facility for the determination of the facts, 
and the findings and recommendations of the said Secretary or the State Depart- 
ment of Labor shall be final and binding. 

XII. — Amendments 
Any method of procedure hereunder may be amended at any time by two- 
thirds vote of the entire membership of the Joint Committee on Rules, or by 
concurrent majority vote of the employees' representatives and of the repre- 
sentatives of the management at an annual conference. 

COLORADO FUEL & IRON COMPANY, Denver, Colorado. 

"The relations between the Colorado Fuel and Iron Company and its em- 
ployees, numbering something like 15,000, are based upon the Industrial Repre- 
sentation Plan adopted about three years ago. The essential feature of this 
plan is direct dealing by the company officers and representatives elected by 
the workmen. At each mining property and in each department of the Minnequa 
Steel Works employees choose representatives on the basis of one for every 
150 workmen, with a minimum of two representatives at each property and in 
each department. These representatives are authorized to treat with company 
officers on all matters connected with working and living conditions, including 
wages and hours of labor. 

"To further this direct dealing joint conferences are held at the Minnequa 
Steel Works and in each mining district, attended by the employees' repre- 
sentatives and an equal or smaller number of officials representing the corpora- 
tion. Annual joint meetings, attended by all the employees' representatives, 
also are held. At these conferences and annual meetings questions regarding 
any phase of the relations between the workmen and the company are freely 
discussed and if possible settled to the satisfaction of all parties. 

"At the Minnequa Steel Works and in each of the mining districts there 
are four joint committees, composed of equal numbers of workmen and company 
officials. These joint committees, the functions of which are indicated by their 
names, are as follows : Industrial Co-operation and Conciliation ; Safety and 
Accidents; Sanitation, Health and Housing; Recreation and Education. Much 
of the most effective work under the Industrial Representation Plan has been 
done by these joint committees. The committees on Safety and Accidents and 
on Sanitation, Health and Housing have made systematic inspections, particu- 
larly of the various mining properties, and their recommendations based upon 
these inspections have led to numerous valuable improvements. In practically 
every instance the recommendations of the joint committees have been adopted 
by the company management. 

170 



"The experience of almost three years has convinced the officers of the com- 
pany that the Industrial Representation Plan furnishes a solution of most of 
the problems connected with the relations between labor and capital. It has 
been demonstrated repeatedly that the representatives of the employees feel 
their responsibility and do not hesitate to present complaints or suggestions in 
behalf of their fellow workmen. On the other hand, it has been found that the 
operating officers of the company are ready to consider all grievances and 
recommendations in good faith and if possible arrive at agreements satisfactory 
to the workmen." — (Letter from Mr. E. S. Cowdrick, Assistant to the President, 
August 22, 1918.) 

' Plan of representation of employees of the Colorado Fuel and Iron Com- 
pany, in the Company's Minnequa Steel Works. 

Part I. — Representation of Employees 
I. Divisions. 

For the purposes of this Plan, the Works shall be divided into nine divisions, 
as follows : 

DIVISION SUBDIVISION 

/ Blast Furnace Department 

First ) By-product Coke Plant 

(Bessemer Department 

Second Open Hearth Department 

Third Rail Mill Department 

20-inch Mill 
, 12-inch Mill 

Bolt Factory 
Spike Factory 

40-inch Mill 

Fifth 



14-inch Mil 



Rod Mill 
10-inch Mill 

Sixth Wire Department 

Carpenter Shop 
Pattern Shop 
General Foundry 

Seventh ( Blacksmith Shop 

Machine Shop 
Boiler Shop 
Pipe-fitting Shop 

Pipe Foundry 
Roll Shop 
) Scale Shop 
• <Electrical Shop 
Masons 
Storehouse 

I Yard 

Ninth I Transportation 

(General 

171 



2. Annual election of employees' representatives. 

Employees in each division of the Minnequa Works shall annnually elect 
from among their number representatives to act on their behalf with respect 
to matters pertaining to their employment, working and living conditions, the 
adjustment of differences, and such other matters of mutual concern and interest 
as relations within the industry may determine. 

3. Time, place, and method of calling annual election of representatives, and 

persons entitled to participate. 
The annual election of representatives shall be held during the month of 
January, and the nomination of representatives shall be held at least two days 
preceding the election. The nomination and election shall be called by direction 
of the President of the Company. Notices of the nomination and election, 
indicating the number of representatives to be elected in each division, shall 
be publicly posted in each subdivision of the Works a week in advance, and 
shall state that employees being wage-earners in the employ of the Company 
at the time of the election and for at least three months immediately preceding, 
but not foremen or salaried emplo3 r ees, shall be entitled to vote. Special elections 
shall be similarly called when removal, resignation, or other circumstance 
occasions a vacancy in representation. 

4. Basis and term of representation. 

Representation of employees in each division shall be on the basis of one 
representative to every one hundred and fifty wage-earners, but each division, 
whatever its number of employees, shall be entitled to at last two representa- 
tives. Unless the number of representatives to which a division is entitled is 
greater than the number of its subdivisions, no two representatives shall be 
nominated or elected from the same subdivision. Where the number of em- 
ployees in any one division exceeds one hundred and fifty, or any multiple 
thereof, by seventy-five or more, an additional representative shall be elected. 
The persons elected shall act as the employees' representatives from the time 
of their election until the next annual meeting, unless in the interval other 
representatives may, as above provided, -have been elected to take their places. 

5. Nomination and election of representatives. 

To facilitate the nomination and election of employees' representatives, 
and to insure freedom of choice, both nomination and election ■ shall be by 
secret ballot, under conditions calculated to insure an impartial count. The 
Company shall provide ballot boxes and blank ballots, differing in form, for 
purposes of nomination and election. Each employee entitled to vote shall be 
given a nomination ballot on which he shall write the names of the fellow 
wage-earners in his division whom he desires to nominate as representatives, 
and deposit the nomination ballot in the ballot box. Each employee may 
nominate representatives to the number to which the division is entitled, and 
of which public notice has been given. Employees unable to write may ask 
any of their fellow employees to write for them on their ballots the names 
of the persons whom they desire to nominate ; but in the event of any nomina- 
tion paper containing more names than the number of representatives to which 
the division is entitled, the paper shall not be counted. The persons — to the 
number of twice as many representatives as the division is entitled to — receiving 
the highest number of nomination votes shall be regarded as the duly nominated 
candidates for employees' representatives, and shall be voted upon as hereinafter 
provided. (For example: If a division is entitled to two representatives, the 

.172 



four persons receiving the largest number of nomination votes shall be regarded 
as the duly nominated candidates. If the division is entitled to three repre- 
sentatives, then the six persons receiving the largest number, etc., etc.) 

6. Counting of nomination and election ballots. 

The nomination and election of representatives shall be under the general 
supervision of the President's Industrial Representative. In each division a time- 
keeper appointed by the Company and a wage-earner designated by the employees' 
representatives of that division shall act as tellers for both nomination and 
election, and take charge of the ballot box containing the nomination votes, and, 
with the aid of the President's Industrial Representative, they shall make out 
the list of the duly nominated candidates, which shall be posted in each sub- 
division not later than the day preceding the election. On the date designated, 
the election of representatives shall be held by secret ballot, from among the 
number of candidates nominated, the same tellers having charge of the balloting, 
and the results of the election, signed by the tellers, shall be posted in each 
subdivision and forwarded to the President of the Company. If dissatisfied 
with the count in any division, as respects either the nomination or election, any 
twenty-five employees in such division who participated in the election, may, 
within twenty-four hours after the results of the voting have been posted, 
demand a recount, and for the purposes of the recount the President's Industrial 
Representative shall select as tellers three from the number of those demanding 
a recount, and himself assist in the counting, and these four shall act, in making 
the recount, in the place of the tellers previously chosen. There shall be no 
appeal from this recount, except to the President of the Company, and such 
appeal may be taken as hereinafter provided, at the request of any twenty-five 
employees who participated in the election. 

7. Appeal in regard to nomination or election. 

The tellers shall preserve, properly sealed, for a period of one week, both 
the nomination and election ballots. Should an appeal be made to the President 
within seven days in regard to the validity of the nomination or election in 
any division, upon a request in writing signed by twenty-five employees in 
such division who participated in the election, the tellers shall deliver the 
ballots to the President of the Company for recount. Should no such request 
be received within that time, the tellers shall destroy the ballots. If after 
considering the appeal the President is of the opinion that the nomination or 
election has not been fairly conducted, he shall order a new election in the 
division concerned at a time to be designated by him. 

8. General proceedings at meetings. 

Meetings of employees in any division may be held at such times as will 
not interfere with operations, on the call of the representatives of such division, 
to consider and make recommendations concerning any matters pertaining 
to their employment, working or living conditions, or arising out of existing 
industrial relations, including such as they may desire to have their repre- 
sentatives discuss with the President and officers of the Company at the Joint 
Conferences of the Company's officers and employees, also any matters referred 
to them by the President, other officers of the Company, the Advisory Board 
on Social and Industrial Betterment, or by any of the several Joint Committees 
appointed at the preceding annual Joint Conferences of officials and employees 
of the Company. A record of the proceedings shall be made by the Secretary 
of the meeting and certified to by the Chairman, and copies delivered to each 
of the representatives of that division and mailed to the President of the 
Company, to be retained by them for purposes of future reference. 

173 



Part II. — Joint Conferences and Joint Committees 
i. Time } place and purpose of Joint Conferences. 

Joint conferences shall be held at the call of the President, at places to 
be designated by him, not later than three weeks following the annual election 
of representatives, and at intervals of not more than four months thereafter, 
as the operating officers of the Company, or a majority of the representatives 
of the employees may find desirable. The purpose of these joint conferences 
shall be to receive reports of Joint Committees, to discuss freely matters of 
mutual interest and concern to the Company and its employees, embracing a 
consideration of suggestions to promote increased efficiency and production, 
to improve working and living conditions, to enforce discipline, avoid friction, 
and to further friendly and cordial relations between the Company's officers 
and employees. 

2. Representation at Joint Conferences. 

At the joint conferences the Company shall be represented by its President 
or his representative and such other officials as the President may designate. 
The employees shall be represented by their elected representatives. The Com- 
pany's representatives shall not exceed in number the representatives of the 
employees. The Company shall provide at its own expense appropriate places 
of meeting for the conferences. 

3. Proceedings of Joint Conferences. 

The joint conferences shall be presided over by the President of the 
Company, or such executive officer as he may designate. Each conference 
shall select a Secretary who shall record its proceedings. The record of 
proceedings shall be certified to by the presiding officer. 

4. Joint Committees on Industrial Relations. 

The first joint conference held in each year shall select the following 
joint committees on industrial relations, which joint committees shall be regarded 
as permanent committees to be entrusted with such duties as are herein set 
forth, or as may be assigned by the conferences. These joint committees shall 
be available for consultation at any time throughout the year with the Advisory 
Board on Social and Industrial Betterment, the President, the President's 
Executive Assistant, or any officer of the Operating Department of the Company. 

(a) Joint Committee on Industrial Co-operation and Conciliation, to be 
composed of twelve members; 

(b) Joint Committee on Safety and Accidents, to be composed of twelve 
members ; 

(c) Joint Committee on Sanitation, Health and Housing, to be composed 
of twelve members; 

(d) Joint Committee on Recreation and Education, to be composed of twelve 
members. 

5. — Selection and Composition of Joint Committees. 

In selecting the members of the several joint committees on industrial 
relations, the employees' representatives shall, as respects each committee, 
designate one-half the number of members, and the President of the Company 
or his representative the other half. 

6. Duties of Joint Committee on Industrial Co-operation and Conciliation. 

The Joint Committee on Industrial Co-operation and Conciliation may, of 
its own initiative, bring up for discussion at the Joint Conferences, or have 

174 



referred to it for consideration and report to the President or other proper 
officer of the Company at any time throughout the year, any matter pertaining 
to the prevention and settlement of industrial disputes, terms and conditions 
of employment, maintenance of order and discipline, Company stores, etc, etc. 

7. Duties of Joint Committee on Safety and Accidents. 

The Joint Committee on Safety and Accidents may, of its own initiative, 
bring up for discussion at the Joint Conferences, or have referred to it for 
consideration and report to the President or other proper officer of the Company 
at any time throughout the year, any matter pertaining to inspection, the pre- 
vention of accidents, the safeguarding of machinery and dangerous working 
places, the use of explosives, fire protection, first aid, etc., etc. 

8. Duties of Joint Committee on Sanitation, Health and Housing. 

The Joint Committee on Sanitation, Health and Housing may, of its own 
initiative, bring up for discussion at the Joint Conferences, or have referred 
to it for consideration and report to the President or other proper officer of 
the Company at any time throughout the year, any matter pertaining to health, 
hospitals, physicians, nurses, occupational 'diseases, tuberculosis, sanitation, water 
supply, sewage system, garbage disposal, street cleaning, wash and locker rooms, 
housing, homes, rents, gardens, fencing, etc., etc. 

0. Duties of Joint Committee on Recreation and Education. 

The Joint Committee on Recreation and Education may, of its own initiative, 
bring up for discussion at the Joint Conferences, or have referred to it for 
consideration and report to the President or other proper officer of the Com- 
pany, at any time throughout the year, any matter pertaining to social centers, 
halls, playgrounds, entertainments, moving pictures, athletics, competitions, field 
days, holidays, schools, libraries, classes for those who speak only foreign 
languages, technical education, manual training, health lectures, classes in first 
aid, religious exercises, churches and Sunday schools, club houses, Y. M. C. A. 
organizations, etc., etc. 

Part III. — The Prevention and Adjustment of Industrial Disputes 

j. Observance of Laws, Rules and Regulations. 

There shall be on the part of the Company and its employees, a strict 
observance of the federal and state labor laws and of the Company's rules and 
regulations supplementing the same. 

2. Wages and rules open to inspection. 

The wage rates shall be kept on file by the superintendents of the several 
departments and shall be open to inspection by any representative or other 
employee upon request. The rules in regard to working conditions shall be 
posted in a conspicuous place in each subdivision. 

3. No discrimination on account of membership or non-membership in labor 

or other organizations. 
There shall be no discrimination by the Company or by any of its employees 
on account of membership or non-membership in any society, fraternity or union. 

4. The right to hire and discharge, and the management of the Works. 

The right to hire and discharge, the management of the Works, and the 
direction of the working forces, shall be vested exclusively in the Company, 
and except as expressly restricted, this right shall not be abridged by anything 
contained herein. 

175 



5. Employees' right to caution or suspension before discharge. 

There shall be posted in each subdivision a list of offences for commission 
of which by an employee dismissal may result without notice. For other 
offences, employees shall not be discharged without first having been notified 
that a repetition of the offence will be cause for dismissal. A copy of this 
notification shall, at the time of its being given to an employee, be sent also 
to the President's Industrial Representative and retained by him for purposes 
of future reference. Nothing herein shall abridge the right of the Company 
to relieve employees from duty because of lack of work. Where relief from 
duty through lack of work becomes necessary, men with families shall, all 
things being equal, be given preference. 

6. Employees' right to hold meetings. 

Employees shall have the right to hold meetings at appropriate places on 
Company property or elsewhere as they may desire outside of working hours 
or on idle days. 

7. Employees' right to purchase where they please. 

Employees shall not be obliged to trade at the Company stores, but shall 
be at perfect liberty to purchase goods wherever they may choose to do so. 

8. Employees' right of appeal to President of Company against unfair conditions 

or treatment. 
Subject to the provisions hereinafter mentioned, every employee shall have 
the right of ultimate appeal to the President of the Company concerning any 
condition or treatment to which he may be subjected and which he may deem 
unfair. 

0. Duty of President's Industrial Representative. 

It shall be the duty of the President's Industrial Representative to respond 
promptly to any request from employees' representatives for his presence in 
any subdivision, and to visit all of them frequently to confer with the employees 
or their representatives and the superintendents respecting working and living 
conditions, the observance of federal and state laws, the carrying out of Com- 
pany regulations, and to report the result of such conferences to the President. 

10. Complaints and grievances to be taken up first with foremen and super- 

intendents. 
Before presenting any grievance to the President, the President's Industrial 
Representative, or other of the higher officers of the Company, employees shall 
first seek to have differences or the conditions complained about adjusted by 
conference, in person or through their representatives, with the foreman or 
superintendent. 

11. Investigation of grievances by Presidents Industrial Representative. 
Employees believing themselves to be subjected to unfair conditions or 

treatment and having failed to secure satisfactory adjustment of the same 
through the superintendent, may present their grievances to the President's 
Industrial Representative, either in person or through their regularly elected 
representatives, and it shall be the duty of the President's Industrial Repre- 
sentative to look into the same immediately and seek to adjust the grievance. 

176 



12. The right of appeal to the superior officers of the Company against unfair 

treatment, conditions, suspensions or dismissals. 
Should the President's Industrial Representative fail to satisfactorily con- 
ciliate any difference, with respect to any grievance, suspension or dismissal, 
the aggrieved employee, either himself or through his representative — and in 
either case in person or by letter — may appeal for the consideration and adjust- 
ment of his grievance to the Manager, General Manager, or the President of 
the Company, in consecutive order. To entitle an employee to the consideration 
of his appeal by any of the higher officers herein mentioned, the right to appeal 
must be exercised within a period of two weeks after the same has been referred 
to the President's Industrial Representative without satisfactory redress. 

13. Reference of differences in certain cases to Joint Committee on Industrial 

Co-operation and Comciliation. 
Where the President's Industrial Representative or one of the higher officials 
of the Company fails to adjust a difference satisfactorily, upon request to the 
President by the employees' representatives of the division concerned, or upon 
the initiative of the President himself, the difference shall be referred to the 
Joint Committee on Industrial Co-operation and Conciliation, and the decision 
of the majority of such Joint Committee shall be binding upon all parties. 

14. Representation on Joint Committee to be equal when considering adjustment 

of differences. 
Whenever the Joint Committee on Industrial Co-operation and Conciliation 
is called upon to act with reference to any difference, except by the consent of 
all present the Joint Committee shall not proceed with any important part of 
its duties unless both sides are equally represented. Where agreeable, equal 
representation may be effected by the withdrawal of one or more members 
from the side of the Joint Committee having the majority. 

15. Uvpire to act with Joint Committee in certain cases. 

Should the Joint Committee on Industrial Co-operation and Conciliation 
to which a difference may have been referred, fail to reach a majority decision 
in respect thereto, if a majority of its members so agree, the Joint Committee 
may select as umpire a third person who shall sit in conference with the Com- 
mittee and whose decision shall be binding upon all parties. 

16. Arbitration or Investigation in certain cases. 

In the event of the 'Joint Committee on Industrial Co-operation aid Con- 
ciliation failing satisfactorily to adjust a difference by a majority decision or 
by agreement on the selection of an umpire, as aforementioned, within ten 
days of a report to the President of the failure of the Joint Committee to 
adjust the difference, if the parties so agree, the matter shall be referred to 
arbitration, otherwise it shall be made the subject of investigation by the State 
of Colorado Industrial Commission, in accordance with the provisions of the 
statute regulating the powers of the Commission in this particular. Where a 
difference is referred to arbitration, one person shall be selected as arbitrator 
if the parties can agree upon his selection. Otherwise there shall be a board of 
three arbitrators, one to be selected by the employees' representatives on the 
Joint Committee of Industrial Co-operation and Conciliation, one by the Com- 
pany's representatives on this Committee, and a third by the two arbitrators 
thus selected. 

177 



By consent of the members of the Joint Committee on Industrial Co-opera- 
tion and Conciliation to which a difference has been referred, the Industrial 
Commission of the State of Colorado may be asked to appoint all of the 
arbitrators or itself arbitrate the difference. The decision of the sole arbitrator 
or of the majority of the Board of Arbitration or of the members of the State 
Colorado Industrial Commission when acting as arbitrators, as the case may 
be. shall be final and shall be binding upon the parties. 

ij. Protection of employees' representatives against discrimination. 

To protect against the possibility of unjust treatment because of any action 
taken or to be taken by them on behalf of one or more of the Company's 
employees, any employees' representative believing himself to be discriminated 
against for such a cause shall have the same right of appeal to the officers of 
the Company or to the Joint Committee on Industrial Co-operation and Con- 
ciliation as is accorded every other employee of the Company. Having exercised 
this right in the consecutive order indicated without obtaining satisfaction, for 
thirty days thereafter he shall have the further right of appeal to the Industrial 
Commission of the State of Colorado, which body shall determine whether or 
not discrimination has been shown, and as respects any representative deemed 
by the Commission to have been unfairly dealt with, the Company shall make 
such reparation as the State of Colorado Industrial Commission may deem just. 

COLUMBIA GRAPHOPHOXE CO.. Bridgeport Conn. 

Experience. — Has always met representatives committees by departments. 
Where organized, such as machinists, toolmakers, polishers, and buffers, the 
men have had their own union shop committees who deal with foremen, and on 
request see the management when adjustments cannot be secured through the 
foremen. 

Personal Opinion (Mr. Edward Brundage, employment agent) : — "I per- 
sonally believe department shop committees should be recognized. I do not 
believe, however, that a shop committee covering the whole plant, if of a large 
size, is necessary, or a wise move if the management has proper ideals toward 
its employees." 

CORNELL WOOD PRODUCTS COMPANY, Cornell. Wisconsin. 

"It has been our policy for several years to seek the co-operation of our 
employees and their recommendations on a good many questions. We have 
six committees, the personnel of which changes every three months, who are 
authorized to inspect and make recommendations along the lines of safety first, 
mill housekeeping and general welfare of employees. Our foremen meet 
monthly with the executives of the property who are located at the plant and 
discuss the various problems which come up during the previous month. The 
questions which come up are discussed impartially, and, whenever possible, 
recommendations made are usually accepted by the management. 

'As a result of the above, close contact has been obtained with our employees, 
thereby producing a very friendly feeling and eliminating friction, which we 
formerly had. 

'Tn view of the success of the plan outlined above, we have found it 
necessary to develop the 'Shop Committee' (Works Committee) idea. This 
has been given a great deal of thought, however, but our opinion is that the 
plan we have worked out is sufficient for our needs under conditions ruling 
at present." 

178 



DENNISON MANUFACTURING COMPANY, Framingham, Mass. 

"For nearly twenty-five years we have had in the shop an association for 
accident and sick benefit insurance known as the Men's Mutual Relief Associa- 
tion and for a good many years this association, through its members and 
officers, has taken an active interest in the shop conditions, and this interest 
has been encouraged by the management, Within the last few years the Relief 
Association has elected one of their members each month for three months' 
service to a board called the Safety Committee, and the management has 
appointed a workman each month for the same period. This committee, 
therefore, consists of six men from the shop and a chairman who is the safety 
engineer of the company and is responsible for the accident prevention work in 
this factory. 

"The employees have also organized a Credit Union which has had the 
firm support and co-operation of the management, and to a certain extent, the 
Credit Union has represented employees' views along certain lines. 

"Very recently, at the instance of the Department of Labor, the employees 
of this company held an election and elected sixty odd representatives from 
various rooms and departments in the shop who, in turn, appointed from their 
own number five representatives to sit with one appointed by the management 
as the War Industries Committee. This committee will consider many matters 
suggested by the Department of Labor, but the management hope its activities 
will not end with the war and that it may continue to serve so far as its services 
are needed in the consideration of such questions as you mention in your 
letter." — (Letter from Mr. A. B. Rich.) 

The President of the Company, Mr. H. S. Dennison, under date of October 
10, writes : 

"I want to express my very strong hope that the shop committee idea is 
to form the basis of a very considerable improvement in industrial relations 
in the future. From our own analysis of the problem of industrial relations, 
we are again and again driven to the shop committee policy as an essential 
element. We had,- before the war, about prepared plans for a gradual and 
experimental adoption of the plan and will certainly work to carry it out as 
soon as we are in a position to give to it the thought and care it deserves. 
Meanwhile, my own belief is that every bit of encouragement the Government 
agencies can afford, so that the shop committee plan will be somewhat rooted in 
our system by the end of the war, will be a great service." 

DUTCHESS MANUFACTURING CO., Poughkeepsie, N. Y. 

"On January 1st, 1918, we started our first department under the new 
plan. We soon found that we had not taken sufficiently into account the 
necessity for co-operation. Since that time, we have secured the services of 
an employment manager, who took one of the Government courses, and we 
have organized shop committees in nearly all of our factory departments. We 
expect to complete this shop committee organization so that it will embrace 
every activity. So far, the results have been most satisfactory. 

"We always have and expect to continue to operate an open shop., although 
there has been some activity among our employees during the summer along 
trade union lines. 

"Our committee plan briefly is as follows: We require the employees 
of any department to have a meeting, making nominations and balloting for 

179 



the election of a committee, usually of three from their number. To this com- 
mittee is added suitable representatives of the firm and the committee as a 
whole decide on all questions, such as those outlined in your letter." 

sonal Opinion:- — '"Personally. I regard the shop committee idea as the 
very best means of promoting co-operation. It breaks down the barrier of 
suspicion and distrust and paves the way to the 'willing mind.' which we believe 
is absolutely essential to satisfactory progress." — F. L. Sweetser, General 
Manager. 

EYERLASTIK. Incorporated, Bridgeport., Conn. 

"We have seven" plants. In all of these plants we have meetings of the 
foremen and heads of departments to consider all practical questions in con- 
nection with the operation of the mill and working conditions. The question 
of wages is not a matter for discussion at these meetings. Any other matters, 
however, are proper for discussion at these foremen's meetings. In three of 
our plants committees from the employees are invited to meet with the mill 
management and take up such matters as are of common interest, but never 
discuss the question of wages. We consider these meetings very satisfactory 
and are very confident that many times they have avoided friction between the 
employees and the management of the mill 

"In only one of our mills are the employees union-organized. 

"We have had practically no labor difficulties in any of our mills, and 
attribute some of this result to our efforts to keep as closely as possible to the 
general mind of the employees as reflected in these committees in the larger 
mills and by personal contact with the smaller mills." 

WILLIAM FILENE'S SONS CO.. Boston, Mass. 

THE FILENE CO-OPERATIVE ASSOCIATION 

From "A Thumbnail Sketeh of the Filene Co-operatize Association" 

The Filene store is operated on a minimum wage scale, i. e. } no woman or 
girl employee is paid less than S8.00 a week. 

Long ago. in the transition from the other little store to the present 
business, the friendly personal relations between the owners and the employees 
of the little store became difficult to maintain because of the fast increasing 
numbers. But the firm and the employees had found these relations so valuable 
that they still wished them maintained. The story of their search for the 
way of doing that is the story of the F. C. A. (i. e., the Filence Co-operative 
Association). 

That search was entered upon and carried through in a spirit of fullest 
sympathy with the ideals of human justice and brotherhood, but there was also 
the fullest realization that nothing permanently good would be accomplished 
which was not also based upon and justified by the principles of successful 
business. 

Both ends have been obtained. The employees have been given ample power 
to correct on their own initiative and without the assistance of the firm any 
bad or unjust conditions or rules affecting their discipline or work. The firm 
in turn has secured the hearty co-operation of its people, and its management 
has been able to give to work for the growth and success of the business many 
hours which might otherwise have had to be given to the discipline and 
handling of employees. 

The work has shown that the employees, in exercising the very considerable 
power given to them as the result of this work, inevitably come also to see 

180 



much more clearly and to sympathize with the problems and difficulties of the 
management. Having seen them, they do not abuse their power, but on the 
contrary, they take up heartily their share of the burden of the business and 
become real co-operators in it. It is the clear demonstration of this fact repeat- 
edly proven which has made possible what has already been accomplished. It is 
that, also, which in the future will lead, not only to the maintenance, but also 
to the enlargement of the scope of the Filene Co-operative Association. . . . 

The Filene Co-operative Association is an organization to which every 
regular employee of Wm. Filene's Sons Company belongs by virtue of employ- 
ment. There are no dues imposed upon membership, but each feature of the 
work of the Association is planned to be self-supporting. Participation in the 
various features is optional with the members. 

Its progress has more firmly established a true spirit of willing co-operation 
among all employees and the corporation to the end that their general welfare 
might be conserved and their efficiency increased. 

The purpose of the association is to prevent the enforcement by the manage- 
ment of unjust rules affecting the discipline and working conditions of em- 
ployees; to prevent unjust discharges or removals of employees; to inaugurate 
when needed new rules affecting the discipline, work or conditions of work of 
employees; to conduct the social and so-called welfare activities of the store 
without the dictation, but with the co-operation of the management. 

In general, its purpose is to enable all of the employees of the corporation 
to have a sufficient voice in the store government and administration to make 
it just, considerate and effective, and to develop a healthy atmosphere of real 
service to customers and to each other. 

Powers of the F. C. A. — The way the employees may make their voice in 
the management heard is as follows : 

If two-thirds of the members of the F. C. A. vote in mass meeting to 
change, initiate or amend any rule that affects the discipline or working condi- 
tions of the employees of the store, such vote becomes at once operative. 

Still further, if five sixths of the members of the Council, the elected 
governing body of the F. C. A., vote in favor of such a rule in meeting, it 
goes into effect at the close of one week, unless meanwhile vetoed by the 
General Manager, President or Board of Managers of the Corporation, or a 
majority vote of the F. C. A. But even when vetoed by the management a 
mass meeting may be held by the members of the F. C. A. and a two-thirds 
vote of the entire F. C. A. at such meeting will pass the rule over the veto. 

Directors. — The F. C. A. became a still more important factor in the business 
in 1912, for at that time it was for the first time represented on the Board of 
Directors of the corporation. In this way the F. C. A. is constantly in touch 
with the direction of the business and has a voice in the conduct of it. The 
representation on the board of directors was increased from two members in 
1912 to three members in 1913 and will be increased in 1914 to four out of a 
total of eleven directors. In few, if any, businesses in the world do the 
employees have a stronger voice. 

Use of Power. — How have the employees used their power? Has it been 
used by the employees as a club to force their employers into unfair con- 
cessions, as they might well have done under the organization? Or has it been 
used in a judicial, fair-minded manner? "Let us take an incident that happened 
in 1911.. The question for vote was as to whether the store should be closed 

181 



all day Saturday, June 18, the day preceding being Bunker Hill Day, a State 
holiday. If this were done it would give the employees a three-day holiday. 
A precedent for such a vote had been established some years before when they 
had voted to close the store on July 5 (a Saturday), July 4, the holiday, coming 
on Friday. 

Agitation had been quite intense during the days preceding the meeting, 
for the employees naturally were interested in having an additional day's rest 
with pay; the meeting was to hear both sides of the question and to decide. 
After those in favor of closing had made their plea, those opposed brought 
out an argument few had considered, the fact that conditions were not analagous. 
It was pointed out that a Saturday in the middle of June was much more 
valuable and costly to lose than one in July, that it was the last Saturday before 
the bulk of the school graduations and that much more business would in all 
probability be lost. When the vote was taken, the employees voted by an 
overwhelming majority not to have the extra holiday. 

Similar fair-mindedness has at all times characterized the actions of the 
Association. The important votes it has passed have included, beside the one 
mentioned above, a vote giving the employees an additional holiday on the day 
following the 4th of July; a vote against the customary keeping open evenings 
preceding Christmas ; several votes as to when the working day should end ; 
a vote to allow employees to buy advertised goods on any day, including Monday, 
during their regular shopping hours; a vote to raise enough money to aid 
F. C. A. members suffering loss in the Chelsea fire in 1908 ; a vote that employees 
be permitted to buy black goods for store use at a discount of 20 per cent., 
which was 10 per cent, more than was allowed at that time on other goods. 
Such power puts the employees into a closer relation to the firm than would 
seem possible under any other plan. But the employees have never attempted 
to use this power in a way that would be disadvantageous to the firm, realizing 
that what is best for the firm is in the end best for them. This conception is 
one of the greatest benefits resulting from the Filene Co-operative Association. 

Organization. — At the present time $100,000 or more flows in and out of 
the treasury of the F. C. A. yearly and to regulate and transact the business 
of the organization requires much time and considerable system. A great 
majority of this time is given by the employees, outside of store hours, although 
some exceptions are made, notably in the case of the Arbitration Board, whose 
work is covered below, where it is necessary to call witnesses from many parts 
of the store, and where it is perhaps not known definitely ahead who such 
witnesses might be. 

The organization of the Filene Co-operative Association is as follows : 

Directly responsible to the members is the F. C. A. Council, the governing 
board, the members of which are elected by sections from the store. Next 
in responsibility come the officers of the association, the President, Vice- 
President, Secretary and Treasurer all being elective officers. 

Then come the committees, which may be briefly divided into two groups — ■ 
those elected by the Association and those appointed by the President with 
the approval of the council. Among the elective committees are the Arbitration 
Board, the Insurance, Club House, and the Deposit and Loan Bureau; the 
appointive committees include the Library, Health, Lecture, Finance, Enter- 
tainment, Athletic, Music, Suggestion, Publication, Constitution and Special 
Committees. 

Directly responsible to the F. C. A. council is the F. C. A. Executive 
Secretary and assistants whose work is covered below in greater detail, 

182 



Then there is a Medical Department reporting to the council, and several 
clubs organized independently, but all reporting to the main group of the 
F. C. A. 

A complex organization? Perhaps so, on paper, yet it was built up bit by 
bit. For each part of the organization a need was shown before its inception 
and the need was met in a business-like manner. So each additional cog in 
the wheel, instead of making the machine revolve more slowly, has rendered 
the whole more manageable. For instance, as the F. C. A. grew, it was found 
that mass meetings of the entire body were becoming cumbersome, and that 
it was only on rare occasions and under great stress that all the members could 
be brought together. Hence the occasion arose for the council, to transact 
the business of and act for the main body, and the proviso for mass meetings 
by divisions. 

Naturally the Association requires business quarters in which to transact 
its business. As far back as 1901, the firm set aside certain space for the em- 
ployees and pledged the F. C. A. that the business would never encroach upon 
it. When the new store was opened in 1912 the quarters were, of course, 
enlarged and improved upon. The Association now has for its sole use nearly 
15,000 square feet on the eighth floor of the Filene store. 

Let us for a moment view these "club rooms," as they are called. 

At the right, as one enters, is a complete Clinic, where medical assistance 
is given. It consists of the nurses' office, waiting rooms, doctor's office, men's 
and women's wards and the coryza room, where colds are treated. Next 
comes the assembly room, used for dancing and fitted with easy chairs and 
piano. Then the dining hall, with its tables and cafeteria and grocery store ; 
and behind them is the kitchen — all to provide good food for the employees 
at prices lower than are possible outside. Adjoining the dining hall is the 
library, with couch chairs, books, magazines and trade papers. Here also an 
F. C. A. manicurist has a little office for employees only, her charge being one- 
half the regular rate. 

Next in order comes the office of the F. C. A. Secretary, then the Com- 
mittee Room where smaller committee meetings are held, and a Class Room. 
This latter is ordinarily used for classes in salesmanhip, but for the twelve 
months beginning September 1, 1913, it was loaned to the City of Boston, for 
use in the retail salesmanship courses which the city carries on. 

All of this space is supplied to the co-operative association by the manage- 
ment free from rent, and is managed by the employees themselves. 

Clubhouse Schedule. — Since the new store opened in September, 1912. it 
has become necessary to prevent conflicts of dates between various committee 
meetings to arrange a schedule for several weeks ahead showing what clubs 
and committees are to utilize its facilities on given evenings. 

Activities Committee. — The Activities Committee is the baby of the F. C. A. 
family, but it is a healthy youngster and it is growing fast. 

It is its duty to arrange for all educational opportunities and amusements 
which do not come directly under the charge of the various clubs, and to 
schedule and arrange for the various activities of the F. C. A. in order that 
there may be no conflicts as to the use of the club rooms, and that no two 
organizations may have meetings on the same night, where it will be to the 
detriment of one or the other. 

This committee first took the field in the fall of 1913 and much credit 
belongs to it for the business-like way in which it has handled its educational 
lines. These educational branches include classes in German, French. Millinery. 

183 



Sewing, Modern Dancing and Public Speaking. All of these activities have 
been self-supporting, each member paying a proportionate share of the expense. 
They have made it possible to get these advantages for less than the same 
course would have cost elsewhere. 

In this connection it may be noted in passing that beside the F. C. A. 
educational classes the store itself conducts regular educational work through 
its educational department. This department meets the salespeople, stock people 
and markers in discussions on salesmanship and business management, and in 
addition, through a connection with the public Continuation School, conducts 
classes in retail salesmanship, textiles, etc. The basis of that work is a clear 
statement of what the holder of each position requires in training and education 
to fit herself more fully for the position she holds, and to qualify her for 
promotion into the higher positions. For example, if it is believed that a 
person is fitted for a buyership, instead of allowing her to gather her knowledge 
as best she may, she will follow a carefully laid out course of. training for 
this position. Another important feature of the new educational system is the 
attempt to train those higher up, the executives, that they in turn may properly 
instruct the people under them. This gives training in two quarters, from 
the executive down and from the beginners up. 

The amusements, which are under the charge of this group, are: the Women's 
Bowling League (the Men's Bowling League being a part of the Men's Club), 
theatre parties, an opportunity to see the best operas, and the campfire group. 

Arbitration Board Founded June, 1901. — August, 1912, the Arbitration 
Board's purpose and powers were extended and freshly defined. The following 
extracts from the F. C. A. Constitution show the place of arbitration in the 
new business : 

Purpose: The purpose for which arbitration is established in the busi- 
ness is to insure justice in the administration of the work of the store. 

Scope: — The scope of its activity shall include all cases in which any 
member of the F. C. A. has reason to question the justice of a decision 
by a superior or the action of an F. C. A. Committee or member. 

Duty: The duty of the Board shall be to see that justice prevails either 
by initiating an inquiry or by granting a hearing to any member of the 
F. C. A. It shall conduct an exhaustive examination of each case coming 
before it. 

Powers: The powers of the Arbitration Board are intended to extend 
to all cases of difference relating to 

(1) An employee and the management. 

(2) Two or more employees in matter of store interest. 

(3) The justice of a rule in question affecting an employee. 

The questions most frequently brought before the Board are of dismissals, 
changes in position or wage, transfers, location in the store, missing sales, short- 
ages, lost packages, breakages, torn or lost garments, differences between em- 
ployees, payment for suggestions. 

The decision of the Board is final for all cases arising within its juris- 
diction ; it may, however, reconsider a case upon request, if it so chooses. 

In cases of dismissal or increase of pay a two-thirds vote of the entire 
Board is needed but in all other cases a majority vote of the entire Board 
decides the case, and in cases of salary deductions shall be an order for refund. 

In minor cases, by majority vote of the whole Arbitration Board, the Chair- 
man may appoint a sub-committee of three members to act as an Arbitration 

184 



Committee. Its action may be appealed from by either party to the Board for 
confirmation or further action by the Board. 

Any executive may have any controversy between him and the executive 
authority of the corporation in respect to his employment, arbitrated by a special 
arbitration committee — one member to be chosen by the executive, one by the 
corporation and the third by these two. Decisions given by a majority of these 
arbitrators is final. 

The Arbitration Board consists of twelve members, elected one from each 
section of the store, and a Chairman appointed from the Council by the Presi- 
dent. The member of the Board elected from each section of the store shall 
be the counselor or advisor of that section. Duties of the Section Counselor are : 

(a) To advise the employees of his section on questions arising in the 
conduct of their work. 

(b) To distribute information as to the Arbitration Board among the 
the people of his section. 

(c) To instruct an appellant in the detail of presenting his case before 
the Board. 

The findings of this Board are confidential. It is of interest, however, 
in viewing its work to note that through the years, the cases seem to average 
about half in favor of the firm, and half in favor of the appellant. 

Insurance Committee. — Let us now look briefly at the purpose of the other 
committees in this organization and the work they have accomplished. 

To the Insurance Committee belongs the honor of being the beginning of 
the F. C. A. At the time it started (1898) there were about one hundred em- 
ployees. The Messrs. Filene, having in mind the losses to employees in both 
time and money 'through illness, at that time suggested a Mutual Insurance 
Association. The suggestion was accepted by the employees and nearly all 
became members. The original plan called for an initiation fee of 25c and 
dues of 5c weekly; the sick benefits were five dollars a week for not over 
four weeks in any year, and there was a death benefit of fifty dollars. 

The insurance organization was not self-supporting on this basis, and con- 
sequently, in the fall of 1906, the question was taken up by the Council and a 
sliding scale adopted. This scale was again readjusted in the fall of 1911 and 
now reads as follows : 

Scale Benefit in case of illness 

Death Benefit 50 per week 

30c per month • 5 per week 

35c per month 6 per week 

50c per month 8 per week 

60c per month 10 per week 

Death Benefit 50 perweek 

Medical Department Founded in 1898. — Its work is building better men and 
women. Simultaneously with the birth of the Insurance Committee came the 
desire to prevent illness as far as possible. Ways and means were considered 
and arrangements made to have come to the store one hour a week a medical 
advisor with whom members could consult and thereby know in time what 
steps to take to prevent disease and breakdown. 

The important point for consideration in connection with this medical 
department was that employees might hesitate to go to a physician appointed 
and paid by the management for fear that illness or poor health might be 
reported to the firm and affect their employment. It was arranged that the 

185 



medical staff should be hired and controlled entirely by the employees them- 
selves. The employees have, therefore, had entire confidence in the work of 
the clinic and have made use of it freely. The result has been of great benefit 
to the employees and to the firm as well. 

Our Medical Director has been at the head of the Medical Department for 
the past sixteen years. He has done and is doing an immense amount of good 
in preventing illness. He has stimulated Health Talks through the Lecture Com- 
mittee, encouraged the use of proper foods through the Club House Committee, 
and advised F. C. A. members through the Echo, the Store Paper, how to dress 
and care for the body in all kinds of weather. He has obtained special rates 
for our Store people with other physicians, dentists, and eye, ear and throat 
specialists. 

In the fall of 1905 a registered nurse was added, a fully equipped medicine 
cabinet and couches installed and a separate doctor's office provided. The Store 
Management from the beginning has paid the salary of the registered nurse and 
all medical expenses. The present clinic is a model of its kind and meets every 
emergency need for medical help. It treats or advises from 100 to 125 daily. 

Lecture Committee 1898-1899. — Through the activities of the Lecture Com- 
mittee arrangements have been made not only for Health talks but also for 
lectures on subjects of general interest by many well-known and interesting 
speakers. 

Library Committee 1899. — As the interests gradually broadened, in 1899 the 
Library was started, using as a nucleus books contributed by a few employees 
and others. The dues were two cents a week. By April, 1901, the library had 
about two hundred volumes. There are now eight hundred volumes on our 
shelves. 

Suggestion Committee 1899.— To encourage thought and to interest em- 
ployees in the policies and activities of the store and of the F. C. A., prizes for 
accepted suggestions for improvements in the business are paid according to a 
schedule arranged by the Store Management. These prizes are awarded by a 
Suggestion Committee appointed by the President of the. F. C. A. They may 
make their awards on the recommendation of the executive whose work the 
suggestion affects, but they have the power of awarding prizes without the 
approval of the person affected by the suggestion. 

F. C.A. Council Founded in 1905. — In 1905 it was found impractical, because 
of the greatly increased number of employees, to transact business by mass meet- 
ings of employees as a whole. Consequently in this year the F. C. A. Council — 
the legislative body of the Association — was formed, the members being the 
elected officers of the Association and elected representatives. Originally there 
was one representative for every fifty employees. At present the Council con- 
sists of one member from each of twelve sections of the store, nine members 
elected at large, and the officers. 

All of the business of the Association is transacted at the bi-weekly meet- 
ings of the Council and then reported back to the employees through the Echo, 
(the F. C. A. organ) or by written notice. Only rarely is it necessary or 
desirable to use the referendum. It was made use of in 1913, for instance, when 
the question as to how the funds of subsidiary organizations should be handled 
was up for discussion. 

The mooted point was a proposed amendment to the constitution providing 
that all funds must be turned over to the treasurer of the Association and 
could not be carried by any club or committee. For weeks and months the 

186 



two sides locked horns over this question in the council. The question was 
finally referred back to the entire body and the amendment was lost. 

F. C. A. Executive Secretary. — The years 1900 and 1901 were very eventful 
in making F. C. A. History, for in 1900 1 the firm created the Welfare Manager's 
Office. In the beginning, the welfare manager engaged and discharged the 
employees of the store, was educational director, acted as intermediary between 
the Firm and the people or between one person and another, and was executive 
secretary to the Filene Co-operative Association. It was her duty to assist all 
F. C. A. Boards and Committees and in general to promote the objects and 
principles of the F. C. A. and oversee the general welfare of employees. 

In 1907 this office was changed and the F. C. A. now has an Executive 
Secretary, who is its executive and administrative head, paid by the store, 
appointed by the President of the F. C. A., and confirmed. by five-sixths vote of 
the entire council. The Secretary acts as a confidential advisor to any employee 
upon any matter affecting her or his personal interest in the store or as a mem- 
ber of the F. C. A. He also acts as an intermediary between the Corporation 
and the people or between one person and another, and decides what is fair 
and just. His decision is an acknowledged factor before the Store Management 
in the final adjustment of a matter on appeal. He is the recognized repre- 
sentative of the F. C. A. and of employees' interests before the Store Manage- 
ment and the Corporation. 

Entertainment Committee 1900. — In 1899 we had our first summer outing. 
The Entertainment Committee was not formed, however, until February, 1900, 
at which time it was organized to take charge of our first Store Entertainment, 
the beginning of the social affairs of the F. C, A. Our summer outings, or Field 
Days, have continued to the present year. 

F. C. A. Bank 1900.— The F. C. A. Bank was established in 1900. In a 
very short time deposits grew so large that in order to safeguard them the firm, 
with the consent of the people, took charge of these funds, agreeing to pay 
five per cent, on all sums deposited with- them. The deposits draw interest 
monthly; interest is added semi-annually. On December 31, 1913, the bank 
deposits totalled $71,800, distributed among 1619 employees, 76.6 per cent, of 
the employees in the store, an average deposit of $44.36. 

The Loan Department of the Bank was introduced by the Board of Finance 
in the fall of 1905. This was done to meet a definite need, for it had frequently 
happened that some of our people had been obliged at times to borrow at loan 
offices small sums of money, for urgent needs, and compelled to pay exorbitant 
rates of interest. Loans are made to employees on the approval of the Bank 
Officers or of two of the Directors. Three hundred and forty-two amounting to 
$7,934.50, were outstanding December 31, 1913, the average amount of each loan 
being $23.20. Loans for more than a person's weekly salary are made only on 
good security. The maximum charge for loans to employees is one per cent. 
a month. 

Club House Committee. — The first Club House opened on April 8, 1901. 
It afforded a place for lunches, with conveniences for preparing food, and 
social gathering lectures, musicales and whist parties. 

At the present time the Dining Room is one of the larger departments of 
F. C. A. work, and is patronized every day by about twelve hundred people, the 
average lunch check being 13c. In addition the Lunch Room serves each day 
breakfasts and suppers. It also furnishes dinner for the numerous evening- 
meetings and caters to parties, dances and outings of store people. 

187 



For the past few years the F. C. A. Club House Committee has made sub- 
stantial savings for employees by establishing co-operative buying. For instance, 
for the past few years it has bought Thanksgiving and Christmas turkeys ; it 
has established Co-operative Coal Buying and Co-operative Supply Buying by 
procuring and selling household necessities at practically wholesale prices. At 
the present time, the Co-operative Govery store does an average business of $25 
a day on groceries and $10 a day for candy. Meats are sold on immediate order. 
Its being associated with the employees' restaurant has helped considerably — 
an important factor where perishable goods are to be considered. 

In February, 1912, a Special Co-operative Supply Committee was appointed, 
to enlarge and develop co-operative buying, not only of food stuffs, but of 
furniture and other articles. This committee for a time operated independently 
of the Club House Committee and sold goods at exact wholesale cost. But in 
August, 1912, the Council voted to have this buying also done through trie Club 
House Committee. 

The work of this Committee has probably meant more to F. C. A. members 
than any other, except the Arbitration Committee. The deterrent factors to 
greater success of this project are the immediate competition of the cut-rate 
grocery stores, which have immense buying power, and the fact that people do 
not like to carry packages in crowded cars. 

F. C. A. "Echo" Founded in 1902. — As the store grew larger some recognized 
publicity organ of F. C. A. events was necessary, in order that all members 
might become more familiar with each committee's work and results. Accord- 
ingly our first Store paper {The Echo, as it was called) was published by the 
employees on July 1, 1902, and appeared nearly every month thereafter until 
April 1, 1912, when The Echo became a weekly paper. 

The paper is open to all for contributions of news items, stories, poems or 
sketches of any kind. The aim is to make The Echo a newspaper with edu- 
cational features. 

Up to April 1, 1912, The Echo paid its own expenses through sales of 
copies and by contributions. The Store Management, however, now makes a 
weekly contribution to the paper but has no voice in its management, nor does 
it see the matter which appears in its columns until the paper is printed. 

Athletics. — In 1904 the Silver League Cup was won by the F. C. A. Baseball 
Club. This was the start of store athletics. Baseball, track athletics, bowling, 
swimming, hockey, skating and other athletics have since been carried on in the 
F. C. A., as a rule under the guidance of special committees. In the season 
1913-14, for instance, the association was represented by one of the best relay 
teams in Boston and has been engaged in several competitive meets with amateur 
athletic organizations. The spirit of pure amateurism has always been the only 
standard, and early the Association took a decided stand against the practice 
of placing athletes on the payroll in order that they might play on various 
teams. 

In February, 1905, the Athletic Committee was created, to encourage the 
formation of dancing and gymnasium classes, basket-ball teams, games, or any 
other form of physical exercise of general or social benefit. At first there were 
about 25 women under the direction of a gymnastic teacher; then all the women 
in the store were given the use of the Normal School of Gymnastics, with the 
privilege of shower baths under the direction of an instructor. 

F. C. A. Music Committee — Founded May, 1905. — The F. C. A. Music Com- 
mittee is appointed to furnish musicales, arrange for a Choral Society of F. C. A. 
members, and to furnish entertainments. 

188 



A notable outgrowth of the music committee is the Filene Choral Club, 
first organized in 1910. The first Choral Concert was given in the store; several 
followed in the larger Boston halls, and in 1913 and 1914 very ambitious con- 
certs, followed by dancing, were the rule. But aside from the concerts, the 
Choral Club has done noteworthy work in providing musical training for those 
who wished to benefit by it. For the past two years, the growth has been 
steadily upward, and the Club promises to be one of the best-known and best- 
liked members of the F. C. A. family. 

First F. C. A. Cottage — Founded Summer, 1905. — For years there was a 
demand for a summer camp or cottage in the country or at the shore, where 
F. C. A. members could live during the warm weather or spend their vacations 
or week-ends. To meet this demand a hostess was arranged for and a cottage 
was hired at Winthrop in the summer of 1905. The next year a Health Camp 
at Winthrop was rented, and again in 1907 and 1910 cottages were hired. 

These attempts at summer cottages, however, raised the larger question of 
permanent housing quarters for F. C. A. members, and special committees have 
investigated the question of building groups of cottages or separate houses to be 
let to members, with arrangements whereby the rentals could be applied to 
payments for purchasing. So far, however, the project has not received sufficient 
support to warrant its being undertaken. 

F. C. A. a Stockholder. — In December, 1906, Wm. Filene' s Sons Company 
increased their capital stock from $150,000 to $400,000 and sold shares to execu- 
tives. At the same time a gift of ten shares to the Filene Co-operative Asso- 
ciation was made by Messrs. E. A. and A. L. Filene in memory of their father, 
William Filene, the founder of the business. The F. C. A. derives a certain 
amount of revenue each year from dividends declared. 

Clubs. — As the F. C. A. grew larger and larger and the difficulty in securing 
mass meetings became greater, smaller groups began to form. 

The first of these was the Girls' Club, organized in 1907 as an outgrowth of 
the educational classes. The purposes of the Club are personal development, 
increased interest in the F. C. A. and its activities, the cultivation of sociability, 
mutual helpfulness among our girls, and the increase of the spirit of loyalty to 
the store. In the early fall of 1912, when hundreds of new girls joined the 
forces at the opening of the new store, this club was divided into two parts: 
one for girls under twenty-one years of age, called the Girls' Club, and one for 
young women over twenty-one, called the Young Women's Club. Any girl or 
woman employee may join. 

In the fall of 1910 a large Men's Club was organized and a constitution 
drawn up and accepted. There had been men's clubs and boys' clubs in the store 
previously, but they flourished only for short periods. Many pleasant enter- 
tainments, and lectures by well-known men, have been furnished by the Club 
at its bi-monthly dinner meetings in the Club House. The object of the Men's 
Club is to help its members by furnishing educational, social, and recreative 
opportunities, by increasing their business efficiency, and to help the F. C. A. 
by furthering the knowledge of self-government and industrial democracy. 

Camp fire Groups. — In 1913, following along the lines laid down by the 
National Campfire Association, several groups of campfire girls in the store 
were organized. These have no connection with the F. C. A. except that indi- 
vidually the members are part of the main organization, but the campfire idea 
in the store undoubtedly received its stimulus from the main organization. 

189 



Profit ing — : September] 1903. the corporation put int: effect : ; 6rst 

profit-sharing plan. In essence this plan called for the payment of a certain 
proportion of the department profits to the department e - these depart- 

ment profits being based on the bill price of the merchandise without deduction 
for discounts. The remaining department profits, diminished by whatever '. 
there might be in other departments, became a general fund in which all execu- 
tives not directly connected with the merchandise departments were to share. 
With variations this plan continued until the new store opened in September, 
1912. In general it ma}- be said of the plan that while considerable sums were 
paid to employees under it, on the whole if was a failure, especially as regards 
the general profit sharers. 

The new store into which the business entered in September, 1912. contained 
nearly three times the space of the former premises and it therefore seemed 
best to make specially heavy expenditures in that year in order to establish 
a much larger business quickly. For this reason it has not been possible to 
make any distribution of profits among the employees, but the following has 
been prepared and it is our intention it shall become operative as soon as profit 
sharing becomes feasible. 

In substance the plan is that all net profits remaining after the payment of 
dividends on the preferred and on the common stock, which represents a rea- 
sonable amount paid by the new corporation formed upon entering into the new 
store for the assets of the former business, together with additional capital 
invested, and also such sums as are necessary to retire stock, etc.. are divided 
among the employees. The distribution is one-half to the members of the 
Management and one-half to the remaining employees. This latter one-half is 
divided among the employees in proportion to their salaries. In order to reward 
specially meritorious service a Board of Apportionment is to be appointed 
annually (consisting of three members selected by the Filene Co-operative 
Association, three by the Directors of the corporation, and a seventh selected 
by these six), which has power to award persons who have performed such 
service suitable sums, these sums being deducted from the half paid to employees 
other than the Management before the distribution is made on the basis ::' 
salaries. The plan also provides that awards out of net profits may be made 
to the F. C. A. before anything is distributed if the Directors of the business 
so decide. 

Bonuses. — In addition to the profit sharing additional provision has been 
made for special remuneration to be deducted before net prof.:s are f.zured, for 
increased efficiency in due proportion to individual results accomplished. This 
is in the form of payments in addition to the fixed wage, consisting of bor.u5t ; 
to department executives, extra commissions to salespeople, etc.. for the achieve- 
ment of especially excellent results in the individual departments. There is some 
likelihood that this bonus idea may be still more largely applied, the basic idea 
being that it will increase efficiency in the department and thus increase the 
amount of net profit to be distributed to pront sharers. 

S -''-Support. — All who have followed the course of mutual benefit organi- 
zations know that they disintegrate if treated paternally. One reason the F. C. A. 
has lived, is that one of its fundamental principles has always been that it 
should be not only self-governing but also in the main self-supporting. While 
it is true that it receives in many ways help from the firm, financially and other- 
wise, in almost every case there is a direct return to the firm in increased 
efficiency for which the management is willing to pay. A notable instance of 
this is the payment of fifty dollars weekly toward the printing of the Association 

190 



organ, The Echo. For this the firm receives a merchandise advertisement 
once each week and the opportunity to educate the employees on matters that 
will save the firm money. Then, too, the firm pays the salary of the Executive 
Secretary of the F. C. A., in return for which he gives help to employees calcu- 
lated to make them more fit for their daily work and for advancement. The 
Club House pays its expenses through the sale of food and groceries, the 
Library through dues for books, the insurance through its weekly premiums, 
and the various clubs and entertainment features through dances, minstrel shows 
and bazaars. 

Several entertainments given each year by the various clubs have become 
nxtures in the store calendar. These include the Girls' Club Dance, the Men's 
Club Dance, the Choral Club Concert, the Annual Field Day, the Young Women's 
Club Dance, the Bowling Banquet and this year a new feature, the Annual 
Bazaar. 

Bazaar and Exposition. — High up in the list of affairs that fill the F. C. A. 
coffers are Bazaars and Expositions. The first of these was held in May, 1908, 
and raised six hundred dollars toward remodeling the Club House. In 1908 
the first F. C. A. Exposition was held. Besides the amusements, the walls of 
the Club House were covered with charts showing the progress of the 
Association. 

In the fall of 1913 the F. C. A. faced a serious deficit. Then it was that 
the greatest of all bazaars was held. Members of the Association from the 
firm down allied themselves with the various committees to make it a success. 
For three nights the Club House was a blaze of color and three different enter- 
tainments — vaudeville, a minstrel show and concert — provided amusement for 
as many as fifteen hundred at one time. Dancing, booths, fortune telling and 
music provided other means of enjoyment, and when the smoke had cleared 
away, the figures showed the Association nearly $2,000 profit. Never had the 
members shown greater get-together spirit — "Co-operation." 

"The F. C. A. Forever." — The F. C. A. has now an organization song, "The 
F. C. A. Forever," which, in 1913, was written and published by two men mem- 
bers and dedicated to the Association. It is original, inspiring and of good 
musical quality and is probably unprecedented in organizations of a like 
character. 

What Results Have Been. — After all, however, movements must be judged 
by results — once the experimental stage is passed. So it is not enough to state 
that the F. C. A. has existed for sixteen years as a self-governing and largely 
self-supporting body. We must look further and see whether such an Asso- 
ciation has resulted in better work, a better personnel and greater CO-OPER- 
ATION, for that is the foundation stone of the Association. 

Getting together and co-operating with one another for personal growth and 
enjoyment comes naturally and obviously from the growth of the organization. 
Co-operation with one another for the benefit of the business — co-operation with 
the management in forwarding their projects are indirect and must be sought 
for more under the surface. Nevertheless they exist and are exerting a helpful 
influence in the store. 

Personal Interest in the Business. — Because they are so banded together and 
have a personally governed organization of this kind, the members feel a per- 
sonal interest in its success, and a pride in the business that makes it possible. 
They have been taken into the linn's confidence. They have come to learn that 
the best interests of the firm are their own, and a feeling of partnership exists 

191 



which does more than coaxing' of orders to make them work to make the 
business successful. 

Just as in nations self-government has proved that it leads to a higher 
social, political and intellectual development, so in business the same principles 
have meant a growth of the individual, which indirectly benefits the business. 
And this individual development working on and on has meant newer and higher 
standards and a better personnel. 

The employees feel a greater security in their position, for they have con- 
stantly before them the protection that their arbitration board — theirs, for it is 
elected and governed by them — may be appealed to for protection against un- 
fairness of any kind ; to enforce the square deal, whether it be in petty difficulties 
or in matters of wages, position or reinstatement after discharge. 

Again, many a round peg in a square hole, as efficiency experts are wont 
to term those vocationally misapplied, can prove to the firm that he or she is 
efficient provided they are merely placed in a position where that efficiency can 
have a wider outlet. 

Special Opportunities a Good Influence. — Even social opportunities are not 
without their benefits in making individual members better men and women for 
the business. The spirit of friendliness, the commingling with their fellows, 
has worn the rough edges off many a young man or young woman who came 
into the store the roughest sort of material and who in a few years became a 
most valued member of the store family. Character, intelligence and personal 
responsibility have inevitably improved once the principles and ideals of the 
Association were grasped. 

•F. C. A. Works Better for the Business. — Direct comparisons have made 
one point clear ; always the man or woman who has taken part in F. C. A. work, 
who has given of his time and experience to help the movement, has helped 
himself even more than he helped the Association, and come out of such work 
a bigger man, and a better man for the firm to have associated with it. He is 
more apt to be successful all round than the man who stays aloof, as happens in, 
happily, comparatively few cases. 

Summed up, the F. C. A. has resulted in a natural loyalty, a feeling of 
personal responsibility for the success of the business, a spirit of help-one- 
another, it has spelled growth for the individual, efficiency for the business ; it 
is easily worth what it has cost the employee in his time and money; the firm 
considers it worth many times what it has cost them in their time and money. 
It is no longer as experiment; it is a fact, it has made the interests of employer 
and employee harmonize. In this the real solution of just and efficient relations 
between employees and employers lies. 

THE GLOBE WERNICKE COMPANY, Cincinnati, Ohio. 

"We have a sort of incipient shop committee composed of six members who 
confine themselves almost exclusively to the consideration of improvements of 
methods and machinery in one department — the one which requires the most 
nursing. We have been giving each member of this committee a present of $100 
just before Christmas. 

"We already have a welfare association, which is supported by its members 
and is assisted by us whenever assistance is needed." 

Personal Opinion. — "Because of the benefits which we have derived from 
the work of this committee, I have been impressed with the desirability of 
enlarging it to take in other departments and to enlarge the scope in the direction 

192 



of wages, grievances, discipline, welfare, etc.; but conditions are so abnormal 
at present that nothing definite in this direction can be done with fair hope 
of success and I do not want it to break down because of being started at the 
wrong time. 

"My personal view is somewhat reflected in what I have said above; but 
I may add that I am keenly interested in the general idea, provided, however, 
that unionism can have no association or connection with it. The conviction 
has been growing on me for a good while that the rank and file of our employees 
ought to have some proper means of expression and that encouragement ought 
to be offered to those of good intentions and that initiative and ability should 
be revealed and encouraged." — Mr. N. C. Yeiser, President. 

H. P. HOOD & SONS, Milk, Cream and Dairy Products, Boston, Mass. 

"The Hood Council," on which is a representative from each one of these 
centres, elected by the working men. In addition there are three councillors- 
at-large who are appointed by the management. This Council has the usual 
functions of shop committees and most anything can be brought up at its meet- 
ings. The question of wages has never been discussed, although there is nothing 
to prevent its being brought up. With us the Council has never been very active 
and simply seems to serve as a means of obtaining by the management the ideas 
and thoughts of the working men, giving an opportunity to anticipate any griev- 
ances on the part of the men before they have gone too far. The mere fact of 
its existence seems of itself to be a source of confidence on the part of the men. 

"We feel that it has served a useful purpose with us, namely, to keep the 
management in closer touch with the. men." 

THE HART SCHAFFNER & MARX Labor Agreement 

A Compilation and Codification of the Agreements of 1911, 1913 and 1916 and 
Decisions Rendered by the Board of Arbitration — ■ 
(Published by the Company, 1916.) 

Preamble 

The parties whose names are signed hereto purpose entering into an agree- 
ment for collective bargaining with the intention of agreeing on wage and 
working conditions and to provide a method for adjusting any differences that 
may arise during the term of this contract. 

In order that those who have to interpret this instrument may have some 
guide as to the intentions and expectations of the parties when entering into this 
compact, they herewith make record of their spirit and purpose, their hope and 
expectations, so far as they are now able to forecast or state them. 

On the part of the employer it is the intention and expectation that this 
compact of peace will result in the establishment and maintenance of a high 
order of discipline and efficiency by the willing co-operation of union and 
workers rather than by the old method of surveillance and coercion; that by 
the exercise of this discipline all stoppages and interruptions of work, and all 
wilful violations of rules will cease; that good standards of workmanship and 
conduct will be maintained and a proper quantity, quality and cost of production 
will be assured; and that out of its operation will issue such co-operation and 
good will between employers, foremen, union and workers as will prevent mis- 
understanding and friction and make for good team work, good business, mutual 
advantage and mutual respect. 

193 



On the part of the union it is the intention and expectation that this com- 
pact will, with the co-operation of the employer, operate in such a way as to 
maintain, strengthen, and solidify its organization, so that it may be made strong 
enough, and efficient enough, to co-operate as contemplated in the preceding 
paragraph ; and also that it may be strong enough to command the respect of 
the employer without being forced to resort to militant or unfriendly measures. 

On the part of the workers it is the intention and expectation that they 
pass from the status of wage servants, with no claim on the employer save his 
economic need, to that of self-respecting parties to an agreement which they 
have had an equal part with him in making; that this status gives them an 
assurance of fair and just treatment and protects them against injustice or 
oppression of those who may have been placed in authority over them; that 
they will have recourse to a court, in the creation of which their votes were 
equally potent with that of the employer, in which all their grievances may be 
heard, and all their claims adjudicated; that all changes during the life of the 
pact shall be subject to the approval, of an impartial tribunal, and that wages 
and working conditions shall not fall below the level provided for in the 
agreement. 

The parties to this pact realize that the interests sought to be reconciled 
herein will tend to pull apart, but they enter it in the faith that by the exercise 
of the co-operative and constructive spirit it will be possible to bring and keep 
them together. This will involve as an indispensable pre-requisite the total 
suppression of the militant spirit by both parties and the development of reason 
instead of force as the rule of action. It will require also mutual consideration 
and concession, a willingness on the part of each party to regard and serve the 
interests of the other, so far as it can be done without too great a sacrifice of 
principle or interest. With this attitude assured it is believed no differences 
can arise which the joint tribunal cannot mediate and resolve in the interest of 
co-operation and harmony. 

Section I. — Administration 
This agreement is entered into between Hart Schaffner & Marx, a corpora- 
tion, and the Almalgamated Clothing Workers of America, and is effective from 
May 1, 1916 to April 30, 1919. 

Officers of the Agreement. — The administration of this agreement is vested 
in a Board of Arbitration and a Trade Board, together with such deputies, 
officials and representatives of the parties hereto as are now or hereafter may 
be appointed for that purpose, whose duties and powers are hereinafter described. 

Board of Arbitration. — The Board of Arbitration shall have full and final 
jurisdiction over all matters arising under this agreement and its decisions there- 
upon shall be conclusive. 

It shall consist of three members, one of whom shall be chosen by the 
union, one by the company, and the third shall be the mutual choice of both 
parties hereto and shall be the chairman of the Board. It is agreed that the 
Board as constituted under the old agreement shall be continued during the 
present agreement, William O. Thompson being the choice of the union, Carl 
Meyer, the choice of the company and J. E. Williams, chairman, being chosen 
by agreement of both parties. 

It shall be the duty of the Board to investigate, and to mediate or adjudicate 
all matters that are brought before it and to do all in its power to insure the 
successful working of the agreement. In reaching its decisions the Board is 
expected to have regard to the general principles of the agreement ; the spirit 

194 



and intent, expressed or implied, of the parties thereto; and, especially, the 
necessity of making the instrument workable, and adaptable to varying needs 
and conditions, while conserving as fully as possible the essential interests of 
the parties involved. 

The line of practice already developed by the Board shall be continued. 
This contemplates that questions of fact and testimony shall in the main be 
considered by the Trade Board while the Board of Arbitration will concern 
itself mainly with questions of principle and the application of the agreement 
to new issues as they arise. But this is not to be construed as limiting the 
power of the Board, which is broad enough to make it the judge of facts as well 
as principle when necessary, and to deal with any question that may arise 
whose disposition is essential to the successful working of the agreement. 

By agreement between the chief deputies, cases may be heard and decided 
by the chairman of the Board alone. 

Emergency Powers. — If there shall be a general change in wages or hours 
in the clothing industry, which shall be sufficiently permanent to warrant the 
belief that the change is not temporary, then the Board shall have power to 
determine whether such change is of so extraordinary a nature as to justify 
a consideration of the question of making a change in the present agreement, 
and, if so, then the Board shall have power to make such changes in wages or 
hours as in its judgment shall be proper. 

Trade Board. — The Trade Board is the primary board for adjusting griev- 
ances, and shall have original jurisdiction over all matters arising under this 
agreement and the decisions relating thereto, and shall consider and dispose of 
all such matters when regularly brought before it, subject to such rules of 
practice and procedure as are now or may be hereafter established. 

The Board shall consist of eleven members, all of whom excepting the 
chairman, shall be employees of Hart Schaffner '& Marx. Five members shall 
be chosen by the company, and five by the union, and it is understood that these 
shall be selected in such manner as to be representative of the various depart- 
ments — cutting and trimming, coat, vest and trousers. 

The Board shall be presided over by a chairman who shall represent the 
mutual interests of both parties hereto, and especially the interest of the suc- 
cessful working of this agreement. He shall preside at meetings of the Board, 
assist in investigation of complaints, endeavor to mediate conflicting interests, 
and, in case of disagreement, shall cast the deciding vote on questions before 
the Board. He shall also act as umpire on the cutting room commission, and 
perform such other duties as may be required of him by the agreement or by 
the Board of Arbitration. 

The chairman shall hold office during the term of the agreement, and in 
case of death, resignation, or inability to act, the vacancy shall be filled by 
the Board of Arbitration. 

It is especially agreed that James Mullenbach, chairman under the former 
agreement, shall be retained under the present agreement. 

Meetings of the Board shall be held whenever necessary at such times as 
the chairman shall direct. Whenever an authorized representative of both 
parties is present, it shall be considered a quorum. Each party is privileged to 
substitute an alternate in place of the regular member whenever they so desire. 
Should either side, after reasonable notice, fail to send a representative to sit 
on the Trade Board, then the chairman may proceed the same as if both parties 
were present. 

195 



Members of the Board shall be certified in writing to the chairman by the 
Joint Board of Hart Schaffner & Marx, and the proper official of the company 
and any member, other than the chairman, may be removed and replaced by 
the power appointing him. 

Deputies. — The deputies are the officers having direct charge of the execu- 
tion of the provisions of this agreement in the interest of their respective 
principles. Each of the parties hereto shall have a sufficient number of deputies 
to properly take care of the work necessary to be done to keep the docket from 
being clogged with complaints, and to insure an efficient working of the agree- 
ment. They shall have power to investigate, mediate, and adjust complaints, 
and settlements made by -the deputies of the parties in dispute shall be legally 
binding on their principals. In case of appeal to the Trade Board or Board of 
Arbitration the deputies may request their respective principals before these 
Boards, and shall have power to summon and examine witnesses, to present 
testimony or evidence, and .'do such other things as may be necessary to place 
their case properly before the trial body, and such body shall see to it that they 
be given adequate opportunity and facility for such presentation, subject to the 
usual rules of procedure. 

One of the deputies on each side shall be known as the chief deputy, and 
the statement of the chief deputy shall be regarded as an authoritative presen- 
tation of the position of his principal in any matter in controversy. Unless 
reversed or modified by either of the Trial Boards the agreement of the chief 
deputies in all matters over which they or their principals have authority shall 
be observed by all parties. 

The union deputy shall have access to any shop or factory for the purpose 
of making investigations of complaints ; but he shall in all cases be accompanied 
by the representative of the employer. Provided, that the latter may at his 
option waive his right to accompany him, also that in minor matters where 
convenience or expedition may be served the union deputy may call out the shop 
chairman to obtain information without such waiver. 

The deputies shall be available to give their duties prompt and adequate 
attention, and shall be subject to the direction of the Trade Board in all matters 
relating to the administration of this agreement. 

Qualifications of Deputies. — Each deputy, in order to qualify for duty, must 
have a commission signed by the proper official representing the union or the 
company, and said commission must be countersigned by the chairman of the 
Trade Board. Deputies must be either employees of Hart Schaffner & Marx, 
or must be persons who are connected with the Joint Board of Hart Schaffner 
& Marx. 

Shop Representative. — The union shall have in each shop a duly accredited 
representative authorized by the Joint Board who shall be recognized as the 
officer of the union having charge of complaints and organization matters within 
the shop. He shall be empowered to receive complaints and be given sufficient 
opportunity and range of action to enable him to make proper inquiry concern- 
ing them. When necessary for the shop representative to leave his place to 
investigate complaints the foreman may, if he deems it necessary, ask to be 
informed of the purpose of his movements, and the representative shall comply 
with his request. 

It is understood the shop representative shall be entitled to collect dues 
and perform such other duties as may be imposed on him by the union, provided 
they be performed in such manner as not to interfere with shop discipline and 
efficiency. 

196 



It is expected that he will represent the co-operative spirit of the agreement 
in the shop, and shall be the leader in promoting that amity and spirit of good 
will which it is the purpose of this instrument to establish. 

The co-operative spirit enjoined on the shop representative in the foregoing 
paragraph shall be expected in equal degree from the shop superintendent, who 
shall be expected to contribute his best efforts to promote harmony and good will 
in the shops. 

Section II. — Procedure 

When Grievances Arise. — When a grievance arises on the floor of the shop, 
the complainant shall report it with reasonable promptness to the shop repre- 
sentative, who shall present it without undue delay to the shop superintendent. 
These two may discuss the complaint in a judicial temper, and may endeavor 
to agree to an adjustment. It is understood, however, that they are not a trial 
board, and it is not expected that they shall argue or dispute over the case. In 
the event that the shop representative is not satisfied with the action of the 
superintendent, he may promptly report the matter to his deputy, with such 
information as will enable him to deal advisedly with the case. 

Failure to comply with these provisions for the regulation of shop transac- 
tions shall subject the offender to discipline by the Trade Board. 

Informal oral adjustments made by shop officials are subject to revision by 
the Trade Board, and are not binding on their principals unless ratified by the 
chief deputies. 

Adjustment by Deputies. — When the shop officers report a disputed com- 
plaint to their respective deputies, they shall give it such investigation as its 
nature or importance demands, either by visitation to the shop or by the taking 
of testimony, and shall make an earnest endeavor to reach a settlement that 
will be just and satisfactory to all the parties in dispute. 

Disagreement by Deputies. — In the event of a failure to agree on an adjust- 
ment, the deputies shall certify the case for trial to the Trade Board, agreeing 
on a written statement of facts if possible. In certifying such disagreement the 
deputy to the Board shall file a statement stating specifically the nature of the 
complaint alleged with the Trade Board, and shall furnish a copy to the repre- 
sentative of the dissenting party who shall have, at least, twenty-four hours to 
prepare his answer, unless otherwise agreed on; provided, that by direction of 
the chairman of the Trade Board emergency cases may be brought to trial at 
once. Where no statement has been filed in writing within a reasonable time 
after disagreement of the deputies, it may be assumed that the disagreement no 
longer exists, and the case may be considered settled. 

Docket and Records. — The chairman of the Trade Board shall keep a docket 
in which all cases shall be entered in the order of their arising. Unless other- 
wise directed by the chairman, cases shall be heard in the order of their filing. 
Duplicate records shall be made by the Board, one copy of which shall be 
retained by the chairman, and one given to the chief deputy for the union. Such 
records shall contain all complaints filed with the Board; orders or decisions of 
the Board, or of the deputies or of any committee; calendars of pending cases, 
and such other matter as the Trade Board may order placed upon the records. 

Direct Complaints. — Complaints may be made directly by either party, with- 
out the intervention of a shop representative, whenever it desires to avail itself 
of the protection of the agreement; but a statement of the facts and grounds 
of such complaints must be filed in writing as hereinbefore provided. Unless 

197 



written notice has been filed, it may be presumed, officially, that no complaint 
exists. 

Decisions, Appeals, Etc. — All decisions of the Trade Board shall be in writ- 
ing, and copies given to the. representatives of each party. Should either party 
desire to appeal from the decision, it shall file with the Board a notice of its 
intention so to do within ten days of the date of the decision. Or if either 
party desires an amendment or modification of the decision, or a stay of execu- 
tion pending the appeal, it may make a motion in writing to that effect, and the 
chairman shall use his discretion in granting it. In certifying the case to the 
Board of Arbitration, the chairman shall make a summary of the case in writ- 
ing, giving the main facts and the grounds for his decision. 

Number of Higher Trial Board. — On being notified of the appeal to the 
Board of Arbitration, said appeal may be heard by the chairman, as repre- 
sentative of the Board, if both parties agree to it and it is acceptable to him. 
He shall, however, have the right to call for tne full board if in his judgment 
the situation requires it. In the event that the representative of the Board of 
either party is unable to attend a Board meeting, such party may, at its dis- 
cretion, furnish a substitute. 

Hearing; How Conducted. — The chairman shall determine the time and 
place of meeting and shall notify all the parties in interest. Each party shall 
prepare the case in advance, and have its testimony, evidence, and facts in readi- 
ness for the hearing. The Board shall give each party ample opportunity to 
present its case, but shall be the judge of procedure and shall direct the hearing 
as to its order and course. After giving an adequate hearing of the evidence 
and arguments the Board shall render its decision is writing, and shall furnish 
copies to the chief deputies of each party and to the chairman of the Trade 
Board. In the event that the Board is unable to reach a unanimous decision, 
the decision of a majority shall be binding. 

Motions for Rehearing. — The Board may, after a reasonable time, grant a 
rehearsing of any decision, if, in its judgment, there appears sufficient reason 
for doing so. Decisions are to be regarded as the Board's best solution of the 
problem offered to it at the time of hearing, but as the problem changes with 
time and experience it is proper there should be afforded a reasonable oppor- 
tunity for rehearing and review. Motions for a rehearing shall be made in 
writing, and shall set forth the reason for the request. 

Enforcement of Decisioss. — All decisions, whether of deputies, Trade Board, 
or Board of Arbitration, shall be put into execution within a reasonable time, 
and failure to do so, unless for explainable cause, shall convict the delinquent 
party of disloyalty to the agreement. The party in error shall be notified of 
the charge, and suitable discipline imposed. The chief deputy of each party 
shall be held responsible in the first instance, for enforcement of decisions or 
adjustments herein referred to, and shall be held answerable, primarily, to the 
Trial Board. 

Section III. — Rates and Hours 

[This Section contains provisions relating to hours, minimum rates of wages, 
overtime, etc. It contains the following two paragraphs relating to the Piece 
Rate Committee.] 

Piece Rate Committee. — Whenever a change of piece rate is contemplated 
the matter shall be referred to a specially appointed rate committee who shall 
fix the rate according to the change of work. If the committee disagrees the 

198 



Trade Board fix the rate. In fixing the rates, the Board is restricted to the 
following rule : 

Changed rates must correspond to the changed work and new rates must 
be based upon old rates where possible. 

Changing Operations. — In the event a piece worker is required to change his 
mode of operation so that it causes him to lose time in learning, his case may 
be brought to the Rate Committee for its disposition. 

Section IV. — Preference 

The Preferential Shop. — It is agreed that the principle of the preferential 
shop shall prevail, to be applied in the following manner: 

Preference shall be applied in hiring and discharge. Whenever the em- 
ployer needs additional workers, he shall first make application to the union, 
specifying the number and kind of workers needed. The union shall be given 
a reasonable time to supply the specified help, and if it is unable, or for any 
reason fails to furnish the required people, the employer shall be at liberty to 
secure them in the open market as best he can. 

In like manner, the principle of preference shall be applied in case of dis- 
charge. Should it at any time become necessary to reduce the force in con- 
formity with the provisions of this agreement the first ones to be dismissed 
shall be those who are not members of the union in good and regular standing. 

Discipline of Union Members. — The Trade Board and Board of Arbitration 
are authorized to hear complaints from the union concerning the discipline of 
its members and to take any action necessary to conserve the interests of the 
agreement. The members referred to herein are those who have joined, or 
who may hereafter join, the Amalgamated Clothing Workers of America. 

Preference in Transfers. — If it becomes necessary to transfer workers from 
one shop to another, the non-union workers shall be the first to be transferred, 
unless at request of the foreman, union workers are willing to go. 

Or if it becomes necessary in the judgment of the company to transfer a 
worker from a lower to a higher paid section or operation, it is agreed that 
union workers shall have preference in such transfers. Provided, that nothing 
herein shall be construed to be in conflict with the provision relating to transfer 
for discipline, and provided that they are qualified to perform the work required 
and that their departure from their section does not work to the disadvantage 
of that section. 

Overcrowding of Sections. — Overcrowding of sections is important in this 
agreement as the point at which the provision for preference becomes operative. 
It is agreed that when there are too many workers in a section to permit of 
reasonably steady employment, a complaint may be lodged by the union, and if 
proved, the non-union members of the section, or as many of them as may be 
required to give the needed relief, shall be dismissed. For the purpose of 
judging the application of preference the Trade Board shall take into consider- 
ation the actual employment condition in the section, as to whether there are 
more people employed at the time of complaint than are needed to do the work, 
and whether they, or any of them, can be spared without substantial injury to 
the company. If it is found that the section can be reduced without substantial 
injury, the Trade Board shall enforce the principle of preference as contemplated 
in the agreement. 

199 



Avoidance of Injury. — Among the things to be considered in the enforce- 
ment of preference are the needs of maintaining an adequate balance of sections, 
of the requirements of the busy season, of the difficulty of hiring substitutes, 
and the risk of impairing the efficiency of the organization. The claims for 
enforcement of preference and for avoidance of injury to the manufacturing 
organization are to be weighed by the Trade Board, and the interests of both 
claims safeguarded as far as possible, the intention being to enforce preference 
so far as it can be done without inflicting substantial injury on the company. 

Preference of Seniority. — If in order to properly balance sections, a reduc- 
tion of force be required greater than can be secured by the laying off of a 
non-union worker as provided for herein, then there may be laid off those who 
are members of the union in the order of their seniority who have been in the 
employ of the company for a period of six months or less, provided that any 
exceptionally efficient worker, or any especially valuable member of the union, 
may be exempted from the rule of seniority. Provided, also, the company shall 
give notice to the chief deputy of its intention to discharge under this clause, 
and if he fails to agree the matter shall be referred to the Trade Board, 

Section V. — Working Conditions 

Discipline. — The full power of discharge and discipline remains with the 
company and its agents ; but it is understood that this power should be exercised 
with justice and with due regard to the reasonable rights of the employee, and, 
if an employee feels that he has been unjustly discharged, he may have appeal 
to the Trade Board, which shall have the power to review the case. 

Every person suspended shall receive a written notice, directing him to 
appear at the office of the company for a decision. Every suspension notice 
properly presented to the discipline officer of the company was be disposed of 
within six working hours from the time of its presentation and a definite decision 
announced to the suspended person. 

^Stoppages. — In case of a stoppage of work in any shop or shops, a deputy 
from each side shall immediately repair to the shop or shops in question. 

If such stoppage shall occur because the person in charge of the shop shall 
have refused to allow the people to continue work, he shall be ordered to imme- 
diately give work to the people, or in case the employees have stopped work, the 
deputies shall order the people to immediately return to work, and in case they 
fail to return to work within an hour from such time such people shall be 
considered as having left the employ of the corporation, and shall not be entitled 
to the benefit of these rules. 

Detention in Shop. — Workers shall not be detained in the shops when there 
is insufficient work for them. The company or its agent shall exercise due 
foresight in calculating the work available, and as far as practicable shall call 
only enough workers into the factory to do the work at sight. And if a greater 
number report for work than there is work for, those in excess of the number 
required shall be promptly notified and permitted to leave the shop. The work 
on hand shall be divided as equally as may be between the remaining workers. 

Complaint Slips. — Before or at the time of entering any complaint against 
any employee in the complaint book said employee shall be notified thereof so 
he may have the opportunity of notifying a deputy of the Board and have said 
complaint investigated. 

200 



Lay-Offs. — Workers who are dismissed may be given lay-off memoranda 
allowing them to return to their shops or factories, trimming or cutting rooms, 
when there is need for their services. Provided, this clause shall not be con- 
strued to give such worker precedence over union members, or to interfere in 
any way with the provision for preference in hiring. 

Transfer of Employees. — The company has the right to transfer employees 
for purposes of administration or discipline, subject to review by the Trade 
Board. If the Board finds that any transfer is being made to lower wages, or 
for any discrimination or improper purpose, or if injustice is being done the 
worker by the transfer, the Board may adjust the complaint. 

Section VI —General Provisions 

Lay Off of Workers. — No union member who is a permanent worker shall 
be laid off in the tailor shops except for cause, whether in the slack or busy 
season, except as provided herein. Cause for temporary lay off may be alterna- 
tion of working periods in slack times, reorganization or reduction of sections, 
lawful discipline, and such other causes as may be provided for herein or 
directed by the Trade Board. 

Co-operation to Abolish Waiting. — The company and the deputies have 
agreed to co-operate to abolish all unnecessary waiting in the shops. 

Division of Work. — During the slack season the work shall be divided as 
near as is practicable among all hands. 

Abandonment of Position. — Whenever any employee shall have absented 
himself from his accustomed place without giving an acceptable reason to the 
foreman or other officers in charge of his work before the end of the second 
business day of his absence, the employer may consider his position forfeited. 
Notice of absence and reason therefor must be given to foreman by messenger, 
mail or telephone. 

Abolishment of Section. — When sections are abolished, the company and 
its agents shall use every effort to give the displaced workers employment as 
much as possible like the work from which they were displaced, within a 
reasonable time. 

Sickness. — Any workers who are absent on account of sickness shall be 
reinstated in their former positions if they return within a reasonable time. 

Trade Board Members. — Complaints against members of the Trade Board 
as workmen are to be made by the foremen to the Trade Board. Any action 
of any employee as a member of the Trade Board shall not be considered 
inimical to his employment with the corporation. No member of a Trade Board 
shall sit on a case in which he is interested, or to which he is a party. 

Union Membership. — The provisions for preference made herein require 
that the door of the union be kept open for the reception of non-union workers. 
Initiation fee and dues must be maintained at a reasonable rate, and any appli- 
cant must be admitted who is not an offender against the union and who is 
eligible for membership under its rules. Provided, that if any rules be passed 
that impose an unreasonable hardship, or that operate to bar desirable persons, 
the matter may be brought before the Trade Board or Board of Arbitration 
for such remedy as it may deem advisable. 

The Old Agreement. — The provisions of the old agreement and the decisions 
based thereon shall be regarded as being in force except as they may be modified 
by, or are not in conflict with the provisions of the present agreement. 

201 



Section VII. — Loyalty to the Agreement 
Experience suggests that there are certain points of strain which it would 
be wise to recognize in advance and to safeguard as far as possible. Among 
the points to be safeguarded are the following: 

1. When dissatisfaction arises over change of price or working conditions. 
It is believed that the agreement provides a remedy for every such grievance 
that can arise, and all complaints are urged and expected to present their 
cases to the proper officials and await an adjustment. If any one refuses to do 
this, and, instead, takes the law in his own hands by inciting a stoppage or 
otherwise foments dissatisfaction or rebellion, he shall, if convicted, be adjudged 
guilty of disloyalty to the agreement and be subject to discipline by the Trade 
Board. 

2. Strain may arise because of unsatisfactory personal relations between 
workers and officials. The company's officials are subject to the law, as are 
the workers, and equally responsible for loyalty in word and deed, and are 
subject to discipline if found guilty of violation. Any complaints against them 
must be made and adjudicated in the regular manner. They are to respect the 
workers and be respected by them in their positions, and supported in the 
proper discharge of their duties. Any one indulging in improper language or 
conduct calculated to injure them or to break down their authority in the shop 
shall be adjudged guilty of disloyalty and disciplined accordingly. 

3. Officials of the union are equally under the protection of the agreement 
when in the exercise of their duties as are the officials of the company, and 
any words or acts tending to discredit them or the union which they represent, 
or which are calculated to injure the influence or standing of the union or its 
representatives shall be considered as disloyalty to the agreement and the 
offender shall be subject to discipline by the Trade Board. 

Provided, however, that no reasonable criticism or expression of disagree- 
ment expressed in proper language shall be deemed a violation within the 
meaning of this section. 

4. If any worker shall wilfully violate the spirit of the agreement by 
intentional opposition to its fundamental purposes and especially if he carry such 
wilful violation into action by striking and inciting others to strike or stop work 
during working hours, he shall, if charge is proven, be subject to suspension, 
discharge or fine. Provided, that if a fine is imposed its amount shall be deter- 
mined by the chairman of the Trade Board and shall not be less than $1 or 
more than $5 for each offense. 

5. If any foreman, superintendent or agent of the company shall wilfully 
violate the spirit of this agreement and especially if he fails to observe and carry 
out any decision of the Trade Board or Board of Arbitration, he shall, if charge 
is proven, be subject to a fine of not less than $10 or more than $1 for each 
offense, at the discretion of the chairman of the Trade Board. 

Section VIII 

[Gives Regulations Governing Individual Departments.] 

Signatures to this Agreement 

for the board of arbitration 

J. E. Williams, Chairman 

W. O. Thompson, for the A. C. W. A. Carl Meyer, for H. S. & M. 

202 



FOR THE TRADE BOARD 

James Mullenbach, Chairman 

FOR HART SCHAFFNER & MARX 

Harry Hart, President Joseph Schaffner, Secretary 

Max Hart, Vice-President Mark W. Cresap, Vice-President 

Earl Dean Howard Milton A. Strauss Gilbert L. Campbell 

A. M. Levy Samuel Browne 

FOR THE AMALGAMATED CLOTHING WORKERS OF AMERICA 

Sidney Hillman, President A. D. Marimpietri, President Joint Board 

Samuel Levin, Deputy Local 39 
Harry Wolchnovesky, Vice-President Local 61 
Morris Spitzer, President Local 144 
Nathan Garbut, Recording Secretary Local 152 
John Katilius, Deputy Local 269 
Edward Anderson, Deputy Local 61 
Joseph Glickman, Deputy Local 152 
Vincent Pachkauskas, President Local 269 
Frank Rosenbloom Louis Taback 

Sam Rissman Hyman Isovitz 

Robert Cunat Frank Petrick 

Sam Diamond . Joe Kaminsky 

HICKEY-FREEMAN COMPANY, Rochester, N. V. 

"We have in our organization a 'Quality Club,' which is composed of heads 
of departments, members of the club by virtue of their position, and elected 
representatives from the employees, approximately one for every twenty-five 
people, divided up according to operations. 

"This club meets once a month with a supper, for which the firm pays. 
Reports are submitted by various committees on matters relating to business, 
such as Traffic, Quality, Efficiency, Service to Customers, etc. Under the 
Activities Committee we endeavor to have all the social welfare features. 

"The elected members are put on these committees to give them a chance 
to become acquainted with conditions and to have a voice in improving and 
perfecting them, 

"The first year of elected representatives they organized themselves into a 
committee with one of their number selected as 'spokesman,' who was expected 
to voice any suggestion that any of the representatives might want to make but 
would fail to because of timidity. 

"This last year there has been no such regular organization of the repre- 
sentatives, possibly because they have been waiting for someone to call them 
together. There has been an opportunity for them to make suggestions at 
meetings and some very good points have been brought up. This has not been 
done as freely as the firm would welcome it nor have they acted as reporters 
to their elective sections as carefully as possible, but on the whole the results 
have seemed satisfactory and we anticipate that after the necessary time to get 
the thought in the minds of the people of what possibilities there are in the 
committee they will accept greater responsibilities. 

"At first this representation was one for every fifty members elected at 
large from the shops. About one year ago this was changed to have the repre- 
sentation according to the operations." 

203 



HYDRAULIC PRESSED STEEL COMPANY, Cleveland, Ohio. 

"Briefly, the purpose of our plan for shop committees is to be sure of 'tying 
in' welfare and similar operations to production. 

"To do this we are creating what we call a small or executive committee 
on welfare or personnel. This consists of such officers as the employment 
manager, the welfare manager, the director of the restaurant, the safety-first 
man, etc., and then asking the foremen to elect an equal number of their own 
group to complete the committee. This group meets each week to discuss ways 
of joining up the different activities so as to bear directly on the production 
problem, and so gain a basis of effectiveness and permanency. It is expected 
that one of this committee will sit in on the committee composed of the factory 
executives in constant touch with all the operating activities of the plant. 

"Once a month this small committee then meets in joint session with a 
shop or large committee on welfare or personnel. This second committee is 
composed of persons either elected directly by the men in the various depart- 
ments, or, as in our Canton Plant, chosen by the directors of the Relief Society, 
who have in turn been elected by the plant force. Xo foreman is eligible to 
membership on this large committee. 

"This plan is in operation in two of our three plants and is expected to be 
in the third shortly. At Canton it has produced such results as modifications in 
the system of laying off which have been greatly to the convenience of workers; 
the extension of the street railway line clear to the plant ; the inauguration of a 
store and lunch room: and the making of almost numberless improvements 
which, in line with the purpose of the committee, 'represent the meeting point 
of the interests of the men and the interests of the company.' " — Sept. 24, iqi8. 

IRVING-PITT MANUFACTURING COMPANY, Kansas City. 

"The Joint Shop Committee of the Irving-Pitt Manufacturing Company is 
known as the Board of Appeals. It is made up of two representatives from each 
department, one elected freely by the men, the other chosen by the officials of 
the company. This committee is given to understand by the management that 
they are to act freely and without prejudice on the part of the company for any 
argument which may be made by an individual member of the Board or for any 
decision made by the Board. Its function is to decide any question of con- 
troversy between the management and any employee which may develop, touch- 
ing the question of wages, hours and conditions of labor. The company adopts 
the policy of accepting these decisions without argument and makes no attempt 
whatever to influence the decisions of the Board. 

"The company's interests are represented on the Board of Appeals by the 
presence of the Superintendent, Chief Inspector, and Chief Planner. These 
three representatives constitute the executive force of the factory. They are 
present only to supply the Board with such information as may be possessed 
by the company touching any question under investigation. They have no right 
to hold office on the Board and are advised not to participate in arguments. 
The Board is left free to frame its own by-laws and elect its own officers. 
There are union and non-union men employed in the factory, and union and 
non-union members of the Board of Appeals. 

"Wages are adjusted by the foremen and are only considered by the Board 
of Appeals in the event of a disagreement. Foremen are not represented on the 
Board and are not present at its meetings unless called in by the Board to 
supply information. Employees unjustly discharged may be reinstated by the 
Board of Appeals over the protest of the foreman. 

204 



"The Board of Appeals has been in existence about fifteen months with 
complete satisfaction on the part of both the company and the employees. Its 
decisions are regarded by the company as being invariably fair. The employees 
have invariably accepted the decisions of the Board without protest. Since the 
establishment of the Board of Appeals labor troubles have been unknown in the 
plant. A spirit of hearty co-operation has been established and is preserved 
to the entire satisfaction of both the company and its employees." 

JEFFREY MANUFACTURING COMPANY, Columbus, Ohio. 

"We have had for a great many years a large number of committees on 
our various shop activities. The committees have and are taking part in the 
conduct of our rate work, tool design work, machine arrangement, working 
conditions, mutual aid, co-operative stores, Building and Loan Association, bake- 
shop, restaurant, employees paper and a number of other activities. We have 
found that these committees are really important factors in harmonizing the 
work of our institution." 



THE JOSEPH & FEISS CO., Clothcraft Shops, Cleveland, Ohio. 

"We have a shop advisory council, the representatives of which are elected 
by the different divisions in the plant. I can say on the whole that the work 
of the council has resulted in an improvement of relationship between the 
management and the workers. This relationship has for a long time been 
exceptionally good in this plant and there was no demand for the council or 
any other representative body, as there are direct formal and informal methods 
thoroughly developed for the purpose of taking up all possible matters between 
management and men and in every way stimulating the mutual good relationship. 
No matter how important a part the management plays in the scheme of things 
of the organization, every means of improving the relationship and of makings 
permanent the relationship between the management and men should be 
developed. 

"It was the management, therefore, that instituted the employees' council 
and it was some time before any active interest was shown. This interest today 
is probably much less than where the council is the main means of contact or 
means of expression of the workers to the management. It, however, has 
found a distinct place for itself and to our minds forms a safeguard for the 
worker, inasmuch as if the present satisfactory relationship were interrupted 
by any act of the management, a working council would be the natural means 
for voicing objections and protection of interests. 

"It also has helped the management in getting across certain important 
things to the working body which otherwise would probably not have been so- 
thoroughly understood ; consequently not so unanimously supported. 

"The province of the council is to propose or review any condition or act 
of the management that relates to the general welfare. Its action is not final 
on most matters except with the approval of the management. The management 
on the other hand undertakes to establish nothing relating to the general wel- 
fare without the approval of the council. The council may go into the methods 
of establishing wages, but the actual wages are not in its sphere, unless, on 
the other hand, the entire principle of our base wage would come into question 
throughout the plant." 

Personal Opinion. — "I feel the above to be the functions of an employees' 
committee. I do not, however, feel that an employees' committee can take an 

205 



active part in the 'management' in the sense that it is often meant. I do not 
feel that it is consistent with organization to have authority where there is no 
responsibility. The management in this organization, I believe, is somewhat 
different than elsewhere. A great many of the so-called shop committees are 
presumed to have a certain amount of authority. Upon close scrutiny it is 
generally found that this is mostly bunk. We have always felt it important that 
there should be no bunk handed employees and under no circumstances should 
they be worked under false pretenses. Consequently out of a sense of sincerity 
to each other we have tried to lay down pretty definite limitations for our 
council. The council is, first and foremost, as stated above, an additional means 
of expression of opinion, suggestion and protest, as the occasion may be. from 
the workers to the management and the management to the workers. In this 
way it fills a place as an educational purpose and has on occasion developed more 
than one worker who owes his advancement from the ranks to the leadership 
displayed as a council member. 

In conclusion I would say that I feel that the council in this plant is by no 
means developed to the full extent of its possibilities. This is a question, how- 
ever, always, of time." — Mr. Richard A. Feiss, General Manager. 

THE LEEDS & NORTHRUP COMPANY, Electrical Measuring Instru- 
ments, Philadelphia, Pa. 

'We have such a committee which we call the Leeds & Northrup Co-oper- 
ative Society. It is in its functions modelled more nearly on that of the Filene 
Company than any other of which I know. Its method of election is rather 
different from any other that I know. The very rapid expansion of our business 
due to the war made it apparent to us something like a year ago that the old 
spirit of mutual understanding and co-operation between the management and 
the employees was largely disappearing. Due to the large number of new 
employees, we felt that it would be very desirable to organize the older em- 
ployees and work out some plan by which they could be more effective in co- 
operating with the management and making the old spirit, the passing of which 
they as well as the management regretted, permeate the mass of new employees. 

"In order that our shop committee might really be representative, we dis- 
cussed the matter first with a group of about fifteen foremen, etc., and then 
called together a group of about sixty of our employees who had been with us 
four years or more continuously. Plans for such an organization were dis- 
cussed through two or three meetings, committees on election, constitution, etc., 
were appointed and resulted in the formation of the Society. The business is 
divided into seven sections, each one of which has one or more representatives 
in the council, according to the number of employees in it: one to fifty-nine 
employees, one representative ; sixty to ninety employees, two representatives ; 
ninety to one hundred and thirty-nine employees, three representatives. In 
addition there is one representative at large for each seventy-five employees. 

"We have at the present time some four hundred and thirty employees, and 
there are fifteen councillors. 

"This plan has been in existence a short time only, the preliminary meetings 
being held in May of this year. All questions that might be occasions of dis- 
pute between the management and the employees that have come up since have 
been submitted to the council and settled satisfactorily. They were not serious 
questions, however. 

"We believe that the council is in good measure fulfilling the objects of 
its appointment, and that it will occupy a more and more important place in our 

206 



organization. It is anticipated that it will take up quite a range of problems 
connected with employees' interests and activities, in addition to those which 
have to do with the relationship between the employees and the management." 

Personal Opinion. — "I am personally a thorough believer in such committees, 
but I think it will be very easy to make the mistake of expecting too much of 
them. It is not reasonable to suppose that a group of people, elected to a com- 
mittee, often chiefly because of their popularity, will have the wisdom and 
experience to settle wisely the many troublesome problems that will naturally 
come before them. It is probable that both time and patience will be necessary 
before such committees reach anything like their maximum of effectiveness. 
On the other hand, there seem to be immediate advantages in the spirit of co- 
operation which the formation of the committee very much enhances, and, in 
addition, men and women develop in the committee unexpected capabilities for 
leadership, etc." — Letter from Mr. Leeds, October 10, 1918. 

MIDVALE STEEL AND ORDNANCE COMPANY, CAMBRIA STEEL 
COMPANY and SUBSIDIARY COMPANIES 

PLAN OF REPRESENTATION OF EMPLOYEES 

Effective October 1, 1918. 
History 

For some time past, the officers of these companies have had under con- 
sideration, the establishing of some method which would provide a practicable 
means of communication and conference with the employees collectively. 

At a meeting of the Board of Directors, held September 19, 1918, it was 
decided to take immediate action, and the president was authorized to post a 
notice at the Johnstown, Coatesville and Nicetown Works, reading as follows: 

"The Board of Directors and Officers of Midvale Steel and Ordnance 
Company, Cambria Steel Company and Subsidiary Companies, recognizing the 
fact that the prosperity of their companies is inseparably bound up with the 
general welfare of their employees, propose, with the co-operation and assent 
of their employees, and for their mutual interests, to establish a plan for repre- 
sentation of employees, which will hereafter govern all relations between the 
companies and their employees. 

"The past history of these companies has been remarkably free from serious 
disputes with their wage-earners, due, it is sincerely believed, to the fair dealing 
which it has always been the aim of the management to maintain in all matters 
affecting the relation of the companies to their employees. 

"We recognize the right of wage-earners to bargain collectively with their 
employers, and we hereby invite all employees to meet with the officers of their 
respective companies for the purpose of considering, and if practicable, adopting, 
a plan of representation by the employees, which shall be thoroughly democratic 
and entirely free from interference by the companies, or any official or agent 
thereof. 

"It is hoped that every employee will respond to this invitation, and meet 
with the officers of the company in the spirit of fair dealing and mutual 
helpfulness. 

"For the mutual convenience of officers and employees, these meetings are 
called as per schedule attached hereto." — A. C. Dinkey, President. 

This notice was posted, and in accordance with its terms, the employees met 
for convenience in their various departments and elected the following 
representatives : 

(Here follows a list of over 100 delegates.) 

207 



The above mentioned representatives, in turn, elected from among their 
number the following committee to come to Philadelphia to confer with the 
officers of the company: 



From Johnstown: 

NAME 

Koontz, John E. 
Bingham, Robert 
Rhode, Henry 
Edwards, E. W. 
Woy, Edward E. 

From Nicetown: 

Boyne, Raymond 
Martin, George 
Souders, Clifford 
Cooke, Thomas 
Faas, Francis X. 



S. 



From Coatesville: 

George, Frederick S. 

Lillico, Geo. E. 

Rhoades, W. H. 



POSITION 

Roll Turner 
Roller — 24" Gautier 
Brick Mason Foreman 
Structural and Steel Car Dept. 
Transportation Department 



Crane Operator 
Mechanical Department 
Foreman No. 4, Machine Shop 
Open Hearth Foreman 
Foreman, Chipping Department 



Foreman and Screwman 

Plate Mill Department, V. W. 

Pit Foreman — No. 2, Open Hearth De- 
partment, Brandywine Works. 

Foreman No. 3, Plate Mill, Brandy- 
wine Works. 



The above committee met with Wm. B. Dickson, vice-president; E. E. Slick, 
vice-president ; John C. Ogden, general superintendent, Johnstown Works ; H. D. 
Booth, general superintendent, Nicetown Works ; H. A. Whitaker, general super- 
intendent, Coatesville Works; in the Widener Building, Philadelphia, and con- 
tinued in conference Wednesday and Thursday, September 25 and 26, 1918. 

For the purpose of facilitating the work of the conference, Mr. Dickson 
presented for the consideration of the employees' representatives, a tentative 
draft of a proposed plan for the purpose of establishing a representative sys- 
tem, which will provide a regular means of communication and conference 
between the officials and the employees of these companies* 

"This draft was submitted, item by item, to the votes of the employees' 
representatives, and, as finally amended by them, on motion duly made and 
seconded, was adopted. . . ." 

The plan as approved by the above committee, was ratified by the plant 
representatives. . . . 

Midvale Steel and Ordnance Company; Cambria Steel Company. — In order 
to establish a representative system which will provide a regular means of 
communication and conference between the officials and the employees of these 
companies, the following plan is hereby adopted : 

* In presenting this tentative draft, Mr. Dickson made it plain to the representatives that 
this was done not with any purpose of unduly influencing their action, but only to give some 
basis on which to proceed with the work in hand. As a matter of fact, the draft was 
amended in several important respects before final adoption. 

208 



Part I. — Plan of Representation of Employees 

(1) For the convenient administration of this plan, each plant shall be 
divided into as many divisions as may be decided upon by the division repre- 
sentatives of each plant, on the basis of one (1) representative for each three 
hundred (300) men. If any division shall have one hundred and fifty (150) 
men in excess of three hundred (300) (or multiple of three hundred) it shall 
be entitled to a representative for such fraction. In case the fraction is less 
than one hundred and fifty (150), it shall not be counted unless merged with 
a similar fraction from another division. 

The above representation shall be based on the average number of em- 
ployees of each division, as. shown on the books of the company for the three 
months, October, November and December, preceding the election. 

For the purpose of determining the proper representation of each division, 
the Plant Conference Committee hereinafter constituted, shall have access to 
the records of the Time Offices of the plant. 

(2) Annual Election of Employees' Representatives. — Employees in each 
division shall elect annually from among their number, representatives as set 
forth in Clause 1 to act on their behalf in all matters pertaining to conditions 
of employment, the adjustment of differences, and all other matters affecting 
the relation of the employees to the company. 

(3) Annual Election of Representatives. — The annual election of representa- 
tives shall be held on the second Monday of January of each year, and the 
nomination of representatives shall be held at least two (2) days preceding 
the election. The meetings for the nomination and election shall be called by 
direction of the Plant Conference Committee hereinafter constituted. Notices 
of the nomination and election, indicating the number of representatives to be 
elected in each division, shall be publicly posted in each subdivision of the works 
a week in advance of such meetings, and shall state that all employees are 
entitled to vote, with the exception of salaried foremen and superintendents. 
Special elections shall be similarly called, when for any reason a vacancy occurs 
in the representation of any division. 

(4) Nomination and Election of Representatives. — To insure absolute free- 
dom of choice, both nomination and election shall be by secret ballot, under 
conditions insuring an impartial count. The company shall, if requested, pro- 
vide ballot boxes. It shall also, if requested, provide blank ballots for purposes 
of nomination, and also ballots, differing in form or color, for purposes of 
election. Each employee entitled to vote, shall be given a nomination blank by 
the election officers, on which he shall write the names of the fellow employees 
in his division whom he desires to nominate as representatives, and will himself 
deposit the nomination blank in the ballot box. Each employee may nominate 
representatives to the number to which the division is entitled, in accordance 
with public notice. Employees unable to write, may ask any of their fellow 
employees to write for them on their ballots, names of the persons whom they 
desire to nominate. 

In the event of any nomination paper containing more than the number of 
representatives to which the division is entitled, the ballot shall be void. Persons 
to the number of twice as many representatives as the division is entitled to 
receiving the highest number of nomination votes, shall be regarded as the duly 
nominated candidates for employees' representatives, and shall be voted upon 
as hereinafter provided. For example, if the division is entitled to two (2) 

209 



representatives, the four (4) persons receiving the largest number of nomi- 
nation votes shall be regarded as the duly nominated candidates. If the 
division is entitled to three (3) representatives, then the six (6) persons receiv- 
ing the largest number, etc. 

(5) Nomination and Election of Representatives. — For the purpose of in- 
augurating this plan, the division representatives elected at the various plants 
on Monday, September 23, 1918, shall hold office until their successors are 
elected on the second Monday of January, 1919. All nominations and elections 
thereafter shall be under the supervision of an Election Committee of three (3) 
for each division, to be selected by the Plant Conference Committee herein- 
after constituted. 

The Election Committee shall count the nominating ballots, make a list 
showing the number of votes cast for each person, and post notices, signed by 
each member of the Committee, at suitable places in the division, giving the 
number of votes cast for each person and announcing the names of the nominees, 
as provided in Clause Four (4). These notices shall be posted at least forty- 
eight (48) hours in advance of the election. On the date designated, the 
election of representatives shall be held by secret ballot, from among the num- 
ber of candidates nominated. 

The election ballots shall be counted by the Division Election Committee, 
and lists in triplicate showing the number of votes cast for each person shall 
be prepared by the Division Election Committee and signed by each member 
thereof, one of which lists shall be posted is a conspicuous place in the division, 
one forwarded to the General Superintendent as evidence -that the persons 
elected are duly accredited, and one list retained by the committee. The persons 
showing by such certified lists to have been elected as provided in Clause Four 
(4), shall be the representatives of the division for the ensuing year, or until 
their successors are elected. 

(6) The Division Election Committee shall seal and hold in safe custody 
for a period of ten days, the ballot boxes containing both the nomination and 
the election ballots. In case of an appeal signed by not less than two-thirds of 
the voters of any division, within this ten-day period, questioning the validity 
of the count, the Division Election Committee shall deliver the sealed ballot 
boxes to the Plant Conference Committee, hreinafter constituted. This Com- 
mittee shall count and certify by signed lists in the same manner as provided 
in Clause Five (5), and there shall be no further appeal from their decision. 
If, in the judgment of the Plant Conference Committee, the irregularities are 
such as to demand a new election, they are authorized to arrange for such 
election. 

(7) As a certain interval of time is required to enable a man to become 
acquainted with the conditions surrounding the work in any department, so 
that he can intelligently represent his fellow workmen, all persons elected as 
Division Representatives shall have been in the employment of the company 
for at least one year in the aggregate; provided, however, that the Division 
Representatives of each plant, if they so elect, may provide for a longer term 
of service in order to qualify a man for the position of representative. 

(8) In case a petition is signed by not less than two-thirds of the employees 
of any division, stating that any elected representative of that division has 
ceased to be satisfactory to them, a re-election for the position occupied by 
such representative, shall be held similar to that which would be held in the 
case of a vacancy. 

210 



(9) When any elected representative ceases to be an employee of the com- 
pany, his position as representative shall become vacant, and his successor shall 
be elected as provided in Part I, Clause Three (3). 

Part II — Administration 

(1) Within a week from the date on which the Division Election Com- 
mittee announce the names of the elected Division Representatives, all of these 
representatives shall meet and elect from among their number, a Plant Con- 
ference Committee, consisting of one representative for each three thousand 
(3,000) employees at the plant; with the proviso that, if, at any plant, the num- 
ber of employees in excess of three thousand (3,000) (or any multiple thereof), 
is fifteen hundred (1,500), there shall be a representative elected for this frac- 
tion; and if the fraction is less than fifteen hundred (1,500), it shall not be 
counted; with the further proviso, that no two members of the Plant Conference 
Committee shall be selected from the same department of the plant. 

(2) Any employee having any grievance, or any matter on which he desires 
to have a decision, shall first present the subject to his immediate foreman or 
superintendent, in person or through his Division Representatives. If unable 
to secure a satisfactory adjustment, the aggrieved person, through his Division 
Representatives, shall present the matter in writing for consideration to the 
Plant Conference Committee mentioned in Clause One (1). If, in the judg- 
ment of this Committee, the grievance is a just one, they shall present the matter 
in writing to the General Superintendent of the works, who shall then confer 
with the Plant Conference Committee, with the view of reaching a satisfactory 
settlement. The General Superintendent shall have the privilege, if he so 
desires, of calling into this conference, all of the Division Representatives. 

(3) If the General Superintendent or his representative, and a majority of 
the Plant Conference Committee (or a majority of the Division Representatives 
in case they are called into the conference), are unable to agree upon any 
question at issue, the matter shall be referred to a committee consisting of the 
General Superintendents of all of the plants of the company and all of the 
members of the Plant Conference Committees of all plants of the company. 
This combination of Plant Conference Committees together with the General 
Superintendents shall be known as the General Committee. On all propositions 
submitted to a vote by the General Committee, the General Superintendents shall 
jointly cast one vote for the company and the representatives of the employees 
shall jointly cast one vote for the employees. The president and other executive 
officers of the company shall have the privilege of appearing before the General 
Committee. If this committee is unable to reach an agreement, the matter 
shall be referred to arbitration. 

(4) One person shall be elected as arbitrator if the parties can agree upon 
his election ; otherwise, there shall be a board of three arbitrators, one member 
to be selected by the president of the company or his representative, one mem- 
ber to be selected by the employee members of the General Committee ; these 
two members, if unable to agree, to select a third arbitrator. The decision of 
the arbitrator or arbitrators in any matter submitted to him or them, shall be 
final and binding upon both the company and the employees. 

Part III — Rules Governing the Employment and Discharge of Workmen 

(1) The right of the company to hire and suspend or discharge men shall 
not be limited, except as expressly provided herein. 

211 



(2) Any employee, guilty of any of the following offenses, shall be sub- 
ject to. immediate discharge without notice: 

(a) Disloyalty to the United States Government by act, or utterance. 

(b) Any offense against the criminal law of the State. 

(c) Assault upon, or attempt to injure, another person. 

(d) Wanton destruction of property. 

(c) Refusal to obey a reasonable order of his superior officer. 
(/) Intoxication while on duty. 

(3) For offenses of a less serious character, such as : 

Carelessness, 

Failure to report for duty regularly and at the proper time, 

Inefficiency, etc., 
it shall be the duty of the officers to secure efficiency by giving the offender 
at least one caution, which, if not heeded, may be followed by dismissal without 
further notice. 

(4) Any employee discharged for cause, may demand that such cause be 
clearly stated to him, and shall have the right of appeal to the General Superin- 
tendent, either in person or through his elected representative. 

Part IV — General 

(1) No employee shall be compelled to purchase any articles, or service, 
from the company nor to subscribe to any fund, except such beneficial asso- 
ciations as are already established or may hereafter, with the consent of the 
employees, be created. This shall not affect the duty of the employees to account 
for tools or other supplies owned by the company and entrusted to their care. 

(2) Nothing in the foregoing shall prohibit the company from giving 
employees an opportunity to subscribe for the stock of the company, Liberty 
Loans, Thrift Stamps, etc., providing all such subscriptions are entirely volun- 
tary on the part of the employed. 

(3) Nothing herein shall affect the right of the company to suspend work in 
any department because of lack of orders or for any other legitimate business 
reason. This may be 'done without notice, but it shall be the duty of the 
officers to give as much advance notice as practicable. 

(4) If any elected representative is appointed as a salaried foreman or 
superintendent, his position as representative shall thereby become vacant, and 
his successor shall be elected as provided in Part I, Clause Three (3). 

Once every three months, at times and places mutually agreed upon by 
the president of the company and the Conference Committee of the plants, 
there shall be a combined meeting of all elected representatives with the officials 
of the company for the purpose of discussing all matters of general interest to 
both parties. 

MOBILE SHIPBUILDING COMPANY, Mobile, Ala. 

Undoubtedly, the big problem confronting us all is Labor. In our yard we 
have adopted the method of handling labor as outlined by the Shipbuilding 
Labor Adjustment Board in their award of April for this district, but we have 
elaborated somewhat upon it, and, as a result, our yard has been entirely free 
from labor troubles. 

212 



It was a rather difficult matter to get the system worked out at first, but 
now that it is working smoothly, the writer assures you that it has proven its 
worth. We handle our labor situation in the following manner: 

I. Craft Committees — Direct Labor 

Craft Committees. — We employ at present eleven different crafts on direct 
labor. Each of these crafts held a mass meeting early last May and elected 
three members to represent their craft, as a craft or shop committee. We 
selected our Employment Manager, Mr. J. E. Taylor, to act as our direct repre- 
sentative with the craft committees. 

The committees selected by the employees to represent the respective crafts 
were required to officially notify our Employment Manager that they were 
duly elected by the majority of • the employees of the yard, who were members 
of that particular craft. Copies of these official notices were made and posted 
on various bulletin boards' throughout the yard, addressed to the employees of 
the yard, requesting them to notify us of any irregularity in the election, if 
so suggested, and if not, the shop committee so posted would be recognized as 
the official craft committee. 

"Joint" Shop Committee * — The chairmen of the eleven craft committees 
constitute the Joint Shop Committee. The Joint Shop Committee then selected 
from their number a chairman and officially notified our Employment Manager 
of the selection and he in turn acknowledged receipt of the notification and in 
this manner we arrived at a formal organization of the Joint Shop Committee, 
which governs the labor problems of our yard. 

Committee Room. — We built an addition to our Employment Office, which 
fs known as the Joint and Craft Committee Room. This room is properly fur- 
nished to accommodate fifteen people and is equipped with standard files for 
each craft committee and one file for the Joint Shop Committee. At its first 
session, the Joint Committee unanimously elected our employment manager's 
stenographer as secretary of the Joint Shop Committee. 

The grievances of the Craft Shop Committees, when we first started this 
program, were numerous, but were usually settled by the foremen or super- 
intendent in charge of the particular craft. It has developed now to the point 
where we very seldom have a direct grievance from the craft committee, as 
practically all of the problems are handled by the Joint Committee. 

Our Joint Committee has a regular meeting every Tuesday at 1.00 P. M., 
and the session convenes until all matters requiring attention are settled. It is 
not unusual to have the session of the Joint Committee adjourn within an hour 
after it convenes, where the Joint Committee was formerly in session from one 
half to one and one-half days. The minutes of the Joint Committee are taken 
by a stenographer, transcribed and officially approved by the chairman and 
secretary of the committee. Copies of these minutes are given to chairmen of 
the various craft committees representing the crafts and to our employment 
manager, general superintendent, and to the writer. 

The Joint Committee convenes weekly whether or not they have any cases 
to consider, and at that regular meeting, aside from our employment manager. 
our general superintendent makes it a point to be present and very often the 
writer is also invited to attend. 

* Note: — "Joint" in that it includes all crafts. Does not include representations of 
management. 

213 



When a grievance by our Craft Committee is submitted to the superin- 
tendent and denied by him, the Craft Committee, of course, has the right to 
appeal to the Joint Shop Committee and it is not at all unusual to find the Joint 
Committee over-ruling the Craft Committee and sustaining the management. ■ 

Our Employment Manager and our Joint Shop Committee have recently 
organized the Moshico War Savings Committee. Last week our total pay roll 
was $35,000 for direct labor and the sale of War Stamps was nearly $3,700. 

In the election of candidates for the Training Center, operated under the 
Industrial Service Section 1 , we permitted the committeemen of the Joint Com- 
mittee to offer suggestions as to the candidates from the various crafts that 
should be given an opportunity to be in the Training Center. Please do not 
understand that we allowed the Joint Shop Committee to make the selections 
for the Training School, but we simply acted on their suggestions, if the merits 
of the candidates warranted it. 

The above in a general way presents the manner in which we handle our 
labor situation so far as it affects direct labor. 

II. Outside Department — Indirect Labor 

Foremen's Association. — We have formed what is known as the Moshico 
Foremen's Association and, as its name signifies, represents all foremen employed 
by our company. To become eligible for membership in this association, candi- 
dates must be classified on our books as foremen or leading men in the yard. 
The By-Laws Committee have ruled that our General Superintendent and all 
assistant superintendents and foremen below him are eligible for active mem- 
bership. The same committee have ruled that all the officials of the company, 
from the President to the General Superintendent, are eligible for honorary 
membership. The Moshico Foremen's Association have at present sixty-three 
(63) members. A bi-weekly dinner is given every other Monday night. The 
business sessions convene immediately after the dinner and last for two or 
three hours. Foremen's meetings are also held hi the yard at least twice a 
week, where views are exchanged. We find that the bi-weekly dinner is a great 
factor in promoting harmony and good feeling among the various foremen. — 
Letter from Mr. Frank McLaughlin, General Manager. 

THE NORTHFIELD COMPANY, Sheboygan, Wis. 

"In our shop we have a committee who look after safety devices and health 
conditions only, and the results have been very satisfactory. 

"The wage question so far has not been taken up by any committee except 
where it refers to the dividends which we pay to our men. We installed a 
dividend plan two years ago which entitles each employee who has been with 
us six months or longer to a percentage on their year's wages, depending on 
the length of service, which we pay to them in twelve monthly installments; the 
total amount to be distributed has so far been decided by the management, but 
the percentage paid to the different individuals is passed on by this committee. 

"We favor the co-operative plan between employer and employees and we 
try to carry it out as far as possible under existing conditions. We employ 
only 140 men and the writer is personally acquainted with every employee in 
our service, which gives him a great deal of information regarding conditions." 

1 Of the Industrial Relations Division, Emergency Fleet Corporation. 

214 



THE PACKARD PIANO COMPANY, Fort Wayne, Ind. 

"We adopted this policy (an 'Industrial Democracy' plan) in the fall of 
1913, with the result that today we are doing more work and better work on 
an eight-hour schedule with 100 less men than we did before the installation of 
this policy on a ten-hour schedule. Former force 270, now 170." — Letter from 
Mr. A. S. Bond, President, September 13, 1918. 

"The principles embodied in the policy which forms the foundation of this 
system are fundamental in business of all kinds and especially is this true in 
the relation of the employer and employee. This being true it is necessary to 
evolve ways and means to keep them constantly before the minds of both 
employer and employee, making them a living power in the lives of both. 

"We have been working under this policy now for five years and would 
not know how to get along without it. We consider it the most valuable thing 
we have and while it may seem visionary, we look upon it from an actual try- 
out of five years, as not only practical, but of all things we know of, properly 
handled, it is the most practical way of conducting business and handling men." 
—Letter of October 26, 1918. 

The system installed by this company is similar to that in operation in the 
factory of William Demuth & Co., Richmond Hill, New York. 

PENBERTHY INJECTOR COMPANY, Detroit, Mich. 

"We have never had any plan in operation which gave the employees or 
representatives of the employees a vote or say as to the policies of this company 
in relation to the shop. Any wage differences or other grievances are usually 
settled by the foreman, and if he is not able to effect a satisfactory settlement, 
the dispute is carried to the superintendent and decided by him. 

"We do, however, have monthly meetings, attended by the various foremen, 
the superintendent and other executives of the company. We have also made 
it a practice to invite three or four employees to attend. 

"At these meetings criticisms and suggestions relating to our shop practices 
and policies are invited, and if the criticism is sound, a committee is appointed 
by the chairman to investigate and report their findings and suggestions at the 
next meeting (unless the matter is satisfactorily settled by discussion when it 
is first put forward), at which time the remedy proposed is discussed and 
criticised, and if it appears practical, put to a vote. If the majority are in 
favor, it is immediately tried out in the shop. From the time it is put in 
practice in the shop, its continuation is left entirely in the hands of the manage- 
ment to decide. 

"We find our foremen's meetings to work out nicely — it gives the men a 
chance to get together, gives them a chance to get a perspective of the shop 
as a whole — and we believe that the discussions which ensue tend to broaden 
them and that occasionally they get an idea from the other fellow." 

THE PROCTOR & GAMBLE CO., Ivorydale, Ohio. 

"About a year ago we inaugurated at this plant and at our Kansas City 
plant what we have designated as The Employees Conference Plan of the 
Proctor & Gamble Company. 

"We feel that the 'Shop Committee' or 'Conference Committee.' as we 
have chosen to call it, is going to be very helpful in the solution of the problem 
of industrial relations. 

215 



"Our plan has been in operation only a few months and at the beginning 
there was considerable reticence upon the part of the employees' representatives 
to participate in discussion, but this is wearing away and we feel that we are 
closer to the employees and they are closer to us than they were at the beginning, 
and we are hopeful that the desired results can ultimately be attained by the 
development of this plan." 

The Employees' Conference Plan follows: 

Preamble 

A mutual understanding between the employees and the management has 
always existed in the Protor & Gamble Company organization. Unity of in- 
terest has been recognized and practiced by both. Friendly relations have 
prevailed to an uncommon extent ; and all of this is reflected in the relations 
between the employees and the company as they exist today. 

Changes are occurring in the industrial life of the Nation ; these changes 
affect our organization alike with others. In former days, when the number 
of employees was not so great, there was closer contact between the employees 
and the management; each was easier of access to the other, and each understood 
better the aims and ambitions of the other. Such relations are essential to the 
happiness and prosperity of the workers and to the success of the industry. 

In order to promote mutual understanding, to effect a friendly relationship 
and to bring about efficient co-operation to a greater extent than has existed 
heretofore, and to provide a plan whereby the desired results can be attained 
we have formulated and hereby adopt for our future dealings The Employees' 
Conference Plan of the Proctor & Gamble Company. 

The purpose of the plan is to provide for regular conferences between 
representatives of the employees and representatives of the management, in 
order to afford to the employees ready means of making suggestions and of 
bringing to the direct attention of the management matters which, in their 
opinion, need adjustment or correction, as well as to give to the management 
opportunity to outline its views and plans to the workmen, to the end that both 
may benefit and that a fuller understanding between them shall exist. 

The employees shall elect from among their number, representatives to 
serve on the Employees' Conference Committee. 

The election, organization and activities of this committee shall accord with 
the provision of the Constitution and By-laws to be prepared and adopted later. 

Constitution 
(Adopted August 5, 1918) 

Article I 
Name. — The name of this organization shall be "The Employees' Conference 
Committee" of The Proctor & Gamble Company. 

Article II 

Structure of Committee. — The committee shall consist of representatives of 
the employees of The Proctor & Gamble Company, to be elected by and to 
represent the employees of the several departments. 

Any employee shall be eligible for election as representative, who is an 
American citizen, or has filed his first application for citizenship, and who has 
been in the employ of the company continuously for one year, just prior to 
the election. 

216 



Article III 

Election of Representatives. — The several departments of the plant (sub- 
stantially as subdivided heretofore) shall each and separately elect its repre- 
sentative or representatives to The Employees' Conference Committee, accord- 
ing to these provisions : 

Those departments having fifty (50) or less employees who receive pay on 
the first pay-day after April 1, shall elect one representative only. 

Those departments having more than fifty (50) employees, who receive 
pay on the first pay-day after April 1, may elect one representative for each 
fifty (50) such employees. 

As new departments are created hereafter, representation shall be provided 
for by the committee. 

The representatives of the employees shall in 1918 be elected (by secret 
ballot of the employees) during the month of April, and in subsequent years, 
between April 1 and 15. One-half of the number of representatives elected in 
1918 shall serve for one year and one-half shall serve for two years. 

In subsequent years, all of the representatives elected to serve on the Em- 
ployees' Conference Committee shall be elected to serve for two years. 

At the April meeting of each year, the secretary shall submit to the chair- 
man a list of names of the members whose terms will have expired at the end 
of that month. The chairman shall arrange to have these notices posted on the 
bulletin boards in the departments which these members represent. The chairman 
vice-chairman and secretary, together with the superintendent of the plant, shall 
arrange to have the employees of those departments select a nominating com- 
mittee, to nominate candidates for election as representative, and to hold 
election in proper and legal manner, between April 1 and April 15, as provided. 
The names of representatives so elected shall be promptly submitted to the 
chairman and these members so elected shall take office at the regular meeting 
held on the first Monday of May. 

All permanent employees of the operating departments of the plant, who 
have been in the employ of the company for sixty days just prior to the election, 
shall be eligible to vote. 

Article IV 

Election to Fill Vacancy. — Any vacancy in the Employees' Conference Com- 
mittee, occurring from any cause, shall be filled by holding a special election 
in the department which he represents, within thirty (30) days from the date 
of such vacancy. Such representatives shall in all cases be elected to serve the 
unexpired term of the representative whom he succeeds. 

Article V 

Officers. — The Employees' Conference Committee, so elected, shall meet on 
the first Monday of May next following the election, and shall organize by the 
election, from among their number and for a term of one year, a chairman, a 
vice-chairman and a secretary. At this meeting the committee shall arrange for 
holding regular meetings, for conference with representatives of the manage- 
ment. 

Article VI 

Representatives of the Management, who shall attend the regular meetings 
of the Employees' Conference Committee shall be selected from time to time 
by the president or general manager of the company. 

217 



Article VII 

Meetings. — The committee shall meet at least once each month. The regu- 
lar meetings shall be held on the first Monday of the month between the 
hours of 6 P. M. and 9 P. M., if possible. 

In order to promote friendly relationship among all those who attend the 
meetings, it shall, if possible, be arranged to serve supper to all those who 
attend these regular meetings ; the regular business meeting to be held imme- 
diately after supper. 

Article VIII 

Duty of Officers. — It shall be the duty of the chairman to preside at all 
meetings of the Employees' Conference Committee and of the Executive Council, 
to preserve order and enforce the Constitution and By-laws. He shall decide 
all questions of order, subject to appeal; he shall have no vote except for the 
election of officers. 

It shall be the duty of the vice-chairman, in the absence of the chairman, 
to discharge the duties of the chairman. 

It shall be the duty of the secretary to keep full and correct record of 
all of the meetings of the committee ; a list of all members of the committee 
showing date of expiration of their membership; to issue written or printed 
notices of all regular and special meetings of the committee, same to be sent 
by mail or messenger to all members ; keep complete record of all meetings of 
the Executive Council; and at the expiration of his term of office, to turn over 
all books, records, etc. to his successor. 

Article IX 

Conduct of Meetings. — At the regular meetings of the committee, any repre- 
sentative may present for discussion and vote, any matter or matters affecting 
the general welfare of the employees in their relationship to The Proctor & 
Gamble Company. 

Two-thirds of all the duly elected members of the committee, present at 
any meeting, shall constitute a quorum. 

Parliamentary rules shall govern proceedings of all meetings. 

A complete stenographic record of the proceedings of all meetings shall be 
made and a transcribed copy shall be made a part of the permanent records of 
the committee. 

Any recommendation of the committee, which has been approved by the 
affirmative vote of three-fourths of all of the members of the committee present 
at the meeting, when the recommendation is voted upon, and which has been 
concurred in by the representatives of the management present at the meeting, 
shall be considered as final. 

Any recommendation, which has been approved by the affirmative vote of 
three-fourths of all of the members of the committee present, but which has 
not been concurred in by the representatives of the management present at the 
meeting, shall be brought up for further discussion at a special meeting to be 
held two weeks later. If it is not, at this meeting, approved and affirmed, as 
provided in the preceding paragraph, it shall then be referred to the Board of 
Directors of the company for decision. 

Any recommendation or proposed action, which has been defeated by failing 
to receive such affirmative vote of three-fourths of all of the members of the 
committee present, shall not be brought up for action again within three months, 
except by the unanimous vote of all members present at any regular meeting 
of the committee during that period. 

218 



Article X 

Executive Council. — The three officers as provided, together with four 
other members selected by the chairman, shall constitute the Executive Council. 
The selection of these four members of the Executive Council shall be approved 
by the affirmative vote of three-fourths of all of the members of the committee 
present at the next regular meeting following the meeting, at which the officers 
are elected. 

Executive Council shall be called together by the chairman whenever he 
may deem it necessary in the interval between the regular meetings of the 
Employees' Conference Committee, to consider any matter or matters pertaining 
to the general interest or welfare of the employees, which, in his opinion, should 
be brought up for preliminary consideration or discussion, prior to, or in 
preparation for, the next regular meeting of the committee. 

Article XI 
Special Committed. — Any matter, which may be presented for the con- 
sideration of the Conference Committee, which requires special investigation 
or consideration, may be referred to a "Special Committee" of five members 
of the Conference Committee, to be selected by the chairman, and announced 
and assigned to specific duty at a regular meeting; such "Special Committee" 
shall serve only for the specific purpose for which selected and shall automatically 
adjourn sine die when such special duty is finished. 

Article XII 
Amendments. — This Constitution can be amended only by the following 
procedure : 

Notice of proposed amendment must be submitted in writing to the presi- 
dent or secretary, who shall bring same to the attention and consideration of 
the Executive Council at the Council's first meeting thereafter. 

If the consideration thereof is approved by the Executive Council, notices 
of the proposed amendment shall be posted on the bulletin boards, not less 
than seven days before the next regular meeting of the Conference Committee. 
The proposed amendment shall be discussed at this regular meeting of the 
Conference Committee, and to be adopted, must receive the affirmative vote 
of three-fourths of the total membership of the Employees' Conference 
Committee. 

Article XIII 
Order of Business. 
1— Roll call. 

2 — Reading of the Minutes. 
3 — Report of Executive Council. 
4 — Report of Special Committees. 
5 — Unfinished Business. 
6 — New Business. 
7 — General Discussion. 
8 — Adjournment. 
The above is subject to change, if the officers find it necessary. 

BY-LAWS 
Article I 
Members will be expected to attend all regular meetings of the Employees' 
Conference Committee. Absence on account of sickness or death will be 
excused. 

219 



Article II 
Any member who fails to attend two consecutive meetings of the Employees' 
Conference Committee, shall receive notification from the secretary of his 
delinquency, and if he fails to attend three regular consecutive meetings, he 
shall forfeit his membership, and the officers shall make provision for election 
of his successor. 

SIMPLEX WIRE & CABLE CO., Boston, Mass. 

"We have a Shop Committee which is elected by the employees with the 
representation so distributed that each department is represented in proportion 
to the number of men in the department. This committee is consulted on a 
variety of subjects which we consider affect them directly, and in all cases to 
date we have had very good co-operation and satisfactory results. 

"However, our experience is so comparatively limited that we are not in a 
position to make any extended statement." 

STANDARD OIL COMPANY, 26 Broadway, New York, N. Y. 

/. Industrial Representation Plan. — In March, 1918, the directors decided 
to inaugurate an Industrial Representation Plan under which each wage-earner 
in the employ of the company would be entitled to participate in an election, 
by secret ballot, of representatives to be chosen from among his fellow- 
employees. The reasons for this step and the method of carrying it into effect 
are outlined in the attached copy of an election call which was posted at each 
of the New Jersey refineries. (See Exhibit "A"). In May this plan of Industrial 
representation was extended to the refineries located outside of New Jersey. 

77. Joint Conference. — Following the election of representatives at the New 
Jersey refineries, the officers and directors of the company, and the superin- 
tendents and foremen from the plants met with the newly elected representatives 
in joint conference at No. 26 Broadway, on the evening of April 1st. This 
conference was preceded by a dinner. At this conference the following agree- 
ment was adopted : 

III. Joint Agreement. — The agreement adopted by a unanimous vote of all 
present at the first joint conference is now the basis of the company's labor 
policy at the various refineries, it having been adopted first by the New Jersey 
representatives and later by the representatives of all other of its refineries. 
(See Exhibit "B"). 

Exhibit A. — Standard Oil Company (New Jersey) 

Bayonne Works 

ANNOUNCEMENT TO EMPLOYEES 
This company invites the co-operation of every employee in seeing to it 
that its long established policy for fair treatment of all employees in matters 
pertaining to wages and working conditions is maintained, and the company, 
on its part, desires to co-operate as far as may be helpful, with each employee 
in his plans to provide satisfactory living and social conditions for himself 
and family. 

In order that each employee at the Bayonne Works may be enabled to 
thus co-operate most effectively, the company invites employees to elect from 
their own number, by secret ballot, men in whom they have confidence, who 
shall represent them in dealing with officers and other representatives of the 
company in matters of mutual interest, this election to be on the general basis 

220 



of one (1) representative to every one hundred fifty (150) employees, with at 
least two (2) representatives in each division of the works. 

The persons thus selected by the employees will be their duly accredited 
representatives at a joint meeting with the representatives of the company, 
which it is proposed to hold at 26 Broadway, New York, April 1, 1918, for the 
purpose of getting better acquainted and of discussing matters of mutual con- 
cern. They will also be the accredited representatives of the employees at all 
subsequent meetings and in all matters of co-operation between the company 
and its employees, until the employees shall designate some other person to 
represent them. It is, therefore, highly important that the employees choose 
with the utmost care those of their number in whom they have most confidence. 

To facilitate this election employees of the Bayonne Works have been 
grouped into divisions, as follows : 

DIVISION INCLUDING NO. OF REPRESENTATIVES 

„. ^Boilermakers \ 2 

' "} Blacksmiths J 

/ Carpenters \ 

\ Painters / 

Second Leadburners 2 

\ Machinists ' 

Masons 
Pipefitters 

hird <! Tinsmiths 

Railroad 

Hoisting Engineers 

Fourth Common Labor 3 

Fifth Watchmen 2 

/Refy. Process No. 1 \ 

Sixth Refy. Process No. 2J 2 

(Pitch Plant ) 

Seventh Refinery No. 3 Stills 2 

Eighth Still Cleaners 2 

Ninth Power Department • 2 

Tenth Paramne Process 3 

Eleventh '. Barrel Factory 3 

Twelfth Cooperage Dept 3 

Thirteenth Case and Can Dept 7 

Fourteenth Bergenport Chemical Co 2 

37 

This election will be held according to the following plan on the day and 
night of Wednesday, March 27, 1918, in order that both the day and night shift 
may have an opportunity to vote. 

Each employee who is a wage-earner will be handed a ballot by the time- 
keeper, on which he will be asked to write or have written as his choice the 
names of as many fellow wage earners in his division as the number of repre- 
sentatives such division is entitled to. He should name not more than one 
from a department, in cases where a division includes more than one department. 

221 



This ballot will be deposited in a ballot box and counted by the timekeeper, 
and the employees of each division are requested to select one of their number 
to aid in supervising the election. The result of the election shall be posted in 
each division, and the two or more in each division receiving the highest 
number of ballots shall be declared elected as representatives, provided that 
in divisions including more than one department, no department shall have 
more than one representative. 

Each employee is urged to participate in this election in order that repre- 
sentatives may be selected as the result of a full and free choice on the part 
of the employees. 

W. C. Teagle, President. 

Approved: A. C. Bedford, Chairman of the Board. 
March 25, 1918. 

Exhibit A. — Standard Oil Company (New Jersey) 
JOINT AGREEMENT 

I. Employment Department: 

This department will be organized at each of the works, the official in 
charge to be responsible to the superintendent of the works, and to have the 
following duties : 

i. To engage all new employees: 

(a) This will involve keeping in touch with the foremen and super- 
tendents and being fully advised as to the employment needs in 
each department. 

(b) Applicants should be judged from the following standpoints: 

(1) Follow such limitations as to age as may be established by the 
Board of Directors from time to time. 

(2) No discrimination to be made on account of membership or 
non-membership in any church, society, fraternity or union. 

(3 Ascertain by personal interview whether applicant is qualified 
intellectually and by experience for the particular work under 
consideration. The result of such interview to be recorded on 
regular blanks and kept for the purpose of future record. 

(4) If applicant is satisfactory in the above respects, refer him to 
the company surgeon for physical examination in accordance 
with established rules. No employee to be engaged unless he 
passes satisfactorily such physical examination. All cases of 
doubt or uncertainty in this respect to be referred to the 
superintendent for decision. 

2. To act as Clearing House in transfers of employees from departments 
where work is slack to other departments needing men. 

3. Employees should be encouraged to come to the Employment Depart- 

ment for friendly counsel in personal matters, or in case they have 
valid reasons for desiring to be transferred to work in another 
department. 

II. Discipline: 

1. As to discharges: 

(a) The following is a list of offenses for which an employee may be 
suspended or dismissed without further notice: This list to be 
posted conspicuously in each department : 
222 



Offenses for Which an Employee May Be Suspended or Dismissed 
Without Further Notice 

1. Violation of any law: 

Special attention is called to the following: 

(a) Carrying concealed weapons; fighting or attempting bodily injury 
to another ; drunkenness ; conduct which violates the common 
decency or morality of the community; 

(b) Stealing, or malicious mischief resulting in injury or destruction 
of property of other employees or of the company. 

(c) Cruelty to animals, the property of other employees or of the 
company. 

2. Violations of the following safety rules : 

(a) Carelessness in regard to accident and safety of fellow-workmen. 

(b) Riding on standard or narrow gauge equipment or on any moving 
machinery where not assigned. 

(c) Running up blocks on cranes. 

(d) Violation of rules governing employees in repairing or oiling of 
moving machinery. 

(e) Failure to wear safety goggles that have been provided. 

(f) Smoking or carrying matches other than safety matches or having 
open lights or fires within prescribed limits where such practice 
is forbidden. 

3. Failure to immediately report accidents or personal injuries to the delegated 

authority wherever possible. 

4. Insubordination (including refusal or failure to perform work assigned) 

or use of profane or abusive language toward fellow employees or 
officials of the company. 

5. Absence from duty without notice to and permission from superintendent 

or foremen, except in case of sickness or cause beyond his control of a 
character that prevents his giving notice. 

6. Harboring a disease that on account of his own carelessness will endanger 

fellow-workmen. 

7. Changing working place without orders or prowling around the works 

away from assigned place. 

8. Falsifying or refusing to give testimony when accidents are being investi- 

gated, or for false statements when application and physical examina- 
tion is being made. 

9. Neglect or carelessness resulting in damage to railroad equipment, or 

neglect of car dropper to properly set brakes on railroad cars in his 
charge. 

10. Wilful neglect in care or use of company's property. 

11. Obtaining material at storehouse or other assigned places on fradulent 

orders. 

12. Sleeping while on duty. 

13. Offering or receiving money or other valuable consideration in exchange 

for a job, better working place or any change in working conditions. 

14. Introduction, possession or use on the property of the company of intoxi- 

cating liquors. 

15. Habitual- use of habit-forming drugs or their introduction or possession 

on the property of the company. 

223 



2. For other offenses not on the above list, an employee shall not be dis- 
charged without first having been notified that a repetition of the offense will 
make him liable to dismissal. Such notice may be given by the foreman who 
shall forthwith send a copy of such notification to the Employment Department. 

3. Foremen finding that the interests of the business require the suspension 
or dismissal of an employee for the commission of any one of the posted list 
of offenses, or for the commission of any other offense after warning notice has 
been given, shall report the case fully to the Employment Department. This 
department, after investigation, may approve the proposed suspension, or 
arrange to transfer the employee, or, if the facts warrant, discharge him after 
securing the approval of the superintendent of the works. 

4. A list of suspensions and discharges, together with the reasons for same, 
shall be forwarded to the Manufacturing Department monthly. 

III. Right of Appeal : 

Any employee who feels that he has been unjustly treated or subjected to 
any unfair conditions, has the right of appeal to the general superintendent and 
the higher officials of the company, provided he shall first seek to have the 
matter adjusted by conference, in person or through his regularly elected repre- 
sentative, with the foreman or the Employment Department, 

Before such appeal shall be taken to any official not located at the plant 
it shall first be considered in a joint conference composed of the employees' 
representatives in the division affected, and an equal number of representatives 
of the company. In case such conference fails to agree unanimously as to a 
fair adjustment, an appeal may be made to the Executive Council at the works, 
or in case such a council has not been organized, to a conference composed of 
all of the employees' representatives at the works together with an equal number 
of company representatives. 

IV. Wage Adjustments : 

Future wage adjustments shall be made in joint conference between the 
employees' representatives in the division affected and representatives of the 
company, such adjustments to be subject to the approval of the Board of 
Directors. 

V. Joint Conferences : 

Joint conferences of employees' representatives and company representatives 
shall be held at each of the works at least quarterly to discuss any matters of 
mutual interest. A general conference of all employees' representatives from 
the various works and of company representatives shall be held annually at 
the call of the president. At all joint conferences the number of company 
representatives shall not exceed the number of employees' representatives. 

Standard Oil Co.— In a letter of October 22, 1918, Mr. C. J. Hicks, Executive 
Assistant to the President, says : 

"The introduction of this plan last March was entirely voluntary on the 
part of the company. It was not caused by any threatened labor trouble or by 
any order of the government. Our experience in adjustment of wages and 
working conditions and grievances, and the securing of valuable co-operation 
in other matters has been most satisfactory both to the company and to its 
employees. . . . You will note that provision was made for secret ballot 
which was taken at the plant during working hours, under such safeguards as 
absolutely insured its fairness. This plan of election secured the personal 

224 



interest and participation of from 90% to 100% of the wage earners at our 
various refineries. We do not believe that it would have been possible to 
secure such a general expression of opinion if an attempt had been made to 
arrange for this election to be held at a meeting outside of the plant." 

STANDARD WOVEN FABRIC COMPANY, Walpole, Mass. 

"We have at the present a committee composed of the plant foremen. In 
this connection I would call your attention to the fact that we employ only 
250 to 300 people in our plant, and our foremen are in close touch with all 
members of our plant organization. We conduct weekly meetings, at which plant 
matters are taken up and discussed, such as suggestions, changes and personal 
matters. This system has been in- operation for approximately a year and works 
very well." — E. O. Christiansen, General Manager. 

THE SUNVILLE BAKING COMPANY, Pueblo, Colorado. 

"I am thoroughly convinced that co-operative management is one of the 
fundamental principles of an efficient and harmonious organization. I did not 
start out with this idea, but have come to believe in it as the result of years 
of experience and experiment. 

"I am just now trying to work out a practical plan which will enable the 
employees to pass upon the qualifications of their fellow employees and of their 
superiors all the way from their immediate foreman to the manager. My 
experience has taught me that an organization conducted along these lines will 
attract the best men in an industry and that those men may be safely trusted 
to any extent, with the possible exception of deciding policies. We have only 
a small organization and it is easier to handle than a large one would be, but 
I maintain that the principle upon which we are working is right, and if it is 
right, it can be made to work in any kind of an organization, the only difference 
being in the time required to put it in operation. Employees will rise to this 
kind of responsibility when the responsibility is put upon them. 

"We have not completed a definite plan for enabling the employees to pass 
upon the qualifications of their fellows and of their immediate superiors, but 
we do get their opinions and do not consider any man a permanent part of the 
organization until we find he is satisfactory — both in his work and his general 
conduct as a citizen and a gentleman. The result is that the efficiency and 
morale of our organization is so high that we can pay higher wages than our 
competitors and still have a lower cost. We have absolutely no fear of com- 
petition. 

"This is a proposition which must be approached without prejudice and 
without mental reservations. An employer who tries this scheme without 
believing in it himself will certainly fail. Any doubt or lack of sincerity upon 
the part of the manager will be recognized at once by the employees. The 
employer must be on the square with his employees in the strongest and most 
emphatic sense of the term to make any such plan successful." — C. J. Powers, 
President. 

THE WARNER BROTHERS COMPANY, Bridgeport, Conn. 

"We operate what is known as an open shop, although we have unions and 
deal with union conditions. In the main, we have found it fairly satisfactory. 
especially considering the class of help we have as compared to what we used 
to have. In earlier days we had an intelligent class of people that could think 

225 



for themselves and you could deal with them more or less satisfactorily, but 
we have a good many foreigners and in many cases it is almost impossible for 
us to reason with them and most difficult for the committees themselves. There 
is always a temptation to the committees to ask for more than they should, but 
this has to be borne in mind in meeting the situation. The committees many 
times have been able to accomplish certain things with the help, in fairness 
and justice to the help as well as ourselves, that we have been unable to 
accomplish. 

"Along the general lines of the efficiency of any work that is organized 
we should say the committees are fairly successful. Further than that, in a 
plant as large as ours you are bound to have some managers and foremen that 
are not even fair to your own help in their desire to make good on their own 
job, and your shop committee is decidedly a check against this tendency." 

THE WHITE MOTOR COMPANY, Cleveland, Ohio. 

"In July, 1915, we installed a plan of meeting our employees through regular 
shop committees. 

"These committees meet every two weeks on the company's time. Com- 
mittees are elected by the men without any suggestions or interference by the 
company. One man represents approximately ten employees. A rotary system 
of election is in force, which changes the personnel of the committee monthly, 
the average length of service being approximately six months. 

"It is our custom to have the foremen of the departments represented by 
the committee and also the superintendent of same, meet with the men, and 
the time of meeting is so arranged that it is possible for the factory manager 
or any of its assistants to attend any or all of the meetings, if desirable. 

"Each committee selects its own chairman and secretary and records are 
kept of each meeting, copy of which is posted on the bulletin boards in the 
departments and another copy is -filed in the factory manager's office for his 
attention. 

"The average length of the meeting is 30 to 45 minutes. 

"Our experience has shown these meetings have worked to the mutual 
benefit of the employees and the management. In these meetings the employee 
has an opportunity to express himself and to offer suggestions for improvement, 
not only to his foremen but to the management direct. No subject is barred 
from these meetings. 

"Questions of improvement to and arrangement of machinery, and equip- 
ment, sanitation, safety devices, improved working conditions, cost of living, 
wages, and production of the plant, have all been discussed. 

"These committees have also given the management an opportunity to 
present very clearly to the employees on short notice any necessary information 
or any change in policy. Through these committees we have been able to 
organize and promote the sale of liberty bonds, thrift stamps, and other pro- 
grams which the Government has brought out in connection with the war. 

"The operation of the committee system has given to a plant as large 
as ours all the advantages of the small shop, in which the manager is acquainted 
with practically every employee and in which the employee is thoroughly familiar 
with his policies. 

"We have never had cause to regret the establishment of our committee 
system, which has proven a very large asset in the building of our factory 
•organization and in the satisfactory handling of our production problems. A 
tetter understanding and the improved conditions which have been brought 

226 



about through these meetings has also made it possible for us to reduce our 
turnover to a minimum." 

(For a full discussion of the employment policies of this company see 
article by Boris Emmet, "Labor Turnover and Employment Policies of a Large 
Motor Vehicle Manufacturing Establishment," United States Bureau of Labor 
Statistics, Monthly Labor Review, October, 1918, pp. 1-18. The committees of 
the company are described on pages 17 and 18.) 

WILLIAM DEMUTH & CO., Richmond Hill, N. Y. 

"This company introduced about May, 1917, a so-called Industrial Democ- 
racy System of Committees. This form of plant government is based by analogy 
on the principles of the constitution of the United States. 

"It provides that the legislative body, or congress, referred to above has, 
with the confirmation of the cabinet, the power to enact and enforce all laws, 
rules and regulations for the conduct of the factory, and its decisions are binding 
as well upon the company as upon the employees. The cabinet is composed 
of members of the executive board, together with the factory and the sales 
managers, the president of the corporation being its presiding officer. 

"The senate includes the superintendent, the heads of departments and the 
factory foremen. As this body already existed when the system was installed, 
the necessity for creating it did not arise, but the constitution provides that 
changes in the personnel of the factory executives or additions to their number 
may be made by the legislative bodies. Ordinarily if a new foreman were 
needed a candidate would be elected by the house, subject to the confirmation 
of the senate and cabinet, but if a man of special technical training were 
required and such a man was not available among the employees the cabinet 
would submit a candidate from the outside, subject to the ratification of the 
other bodies. 

"The house of representatives is limited to 30 members, who are elected 
annually at a mass meeting of the employees. As the number employed at 
present is about eight hundred, one member of the house therefore represents 
about twenty-five employees. To be eligible for membership the candidate 
must have three qualifications: First, he must have been in the employ of the 
company one year or more ; second, he must understand and speak English ; 
third, he must be known by all to be 'on the square.' In this application of 
democratic principles there is no question of equal suffage as the gentler sex is 
well represented in both legislative branches. 

"Meetings of the three governing bodies are held regularly each week, the 
senate being convened at 2 o'clock p. m., and the house at 3.30. The meeting 
place is a room on an upper floor of the office building far enough removed 
from the factory to avoid the noise and confusion. The cabinet meets at 10 
o'clock in the morning of the same day. Each house of congress elects a chair- 
man, or president, and a secretary who keeps a minute record of all proceedings. 

"Business is transacted according to the usual parliamentary procedure. 
Questions of wages, holidays, hours of work, benefits, etc., come under dis- 
cussion ; troubles or misunderstandings are brought to light and straightened 
out; new and better plans of operation are discussed and recommended — whether 
it is improved machinery, tools, methods or men, these bodies of congress have 
the privilege of using and do use their brains in the interest of such better 
service. Committees are appointed by either branch separately or jointly, and 
there are standing committees on such matters as safety, suggestion, welfare. 
ways and means, etc., each reporting to its respective appointing body its findings. 

227 



which are deliberated upon and if found feasible are recommended for enact- 
ment into law. A resolution by any branch, including the cabinet, does not 
become law until ratified by both the other bodies, but when such resolution 
does become law it is considered a mutual obligation. Suggestions upon any 
pertinent subject may be made to the Suggestion Committee, which is empowered 
to make any award they deem suitable up to $5. If in its estimation a sug- 
gestion is of greater value it presents a resolution before the legislative bodies 
and the additional amount of the award is thus determined. Likewise the 
Safety and Welfare committees may order minor changes and improvements 
looking toward the safety of the employee and the betterment of his working con- 
ditions, reserving all matters of major importance for the action of the congress." 
— (From "An Industrial Democracy," by Ellsworth Sheldon, American 
Machinist, August 1, 1918.) 

The company makes the following statement : 

'The system of a shop committee is no doubt a step in the right direction 
and is found to lead to a better understanding and mutual good will between 
the employer and his men, provided this committee meets at regular intervals 
to perform certain distinct functions, and is not only called on certain occasions 
to straighten out troubles. 

"Our efforts towards better understanding with our co-workers have been 
along somewhat different lines, but naturally with the same ultimate purpose 
in mind. About iy 2 years ago we introduced into our organization, consisting 
of about 900 people, our form of Industrial Democracy, and we are very glad 
to say that we feel more enthusiastic about same today than we 'did at the 
start. In other words, it has worked out to our entire satisfaction and we 
know that we can achieve a good deal more than we have up to now, on 
account of the splendid spirit of co-operation which has been fostered by this 
system. 

"Since the introduction of this plan, we have by request of the workers 
themselves, reduced the working hours from 53 to 50 per week, with ah 
increased production and increased earnings as a result, the latter being accom- 
plished without any change of piece work rates. Recently the cabinet suggested 
a reduction from 50 to 48 hours, at which time we offered an adjustment of 
piece work rates to offset the loss of time. It is too early to make any definite 
statement as to the result of this latter change, but certain indications lead us 
to believe that the result of the latter change will be just as gratifying as before. 

"We believe that the greatest advantage to the Industrial Democracy system 
lies in the fact that in the regular meetings of the house and senate any possible 
troubles are discussed, frankly criticised, and disposed of before they begin 
to be real difficulties. In other words, we would rather apply a remedy than 
a cure." 

FROM A METAL-WARE MANUFACTURING COMPANY. 

A large company with factories in various parts of the country has set 
up a shop grievance committee plan. An official of this company writes : 
"I am very much interested in these committees and am taking a personal 
interest in them. 

"In May, 1916, the employees of the New York Branch of this company 
walked out on a strike, the first in the history of this branch, which was built 
more than thirty years ago. Although they were not organized the shut down 
was complete. There was no advance grumbling or murmuring and it came like 
a thunderbolt out of a clear sky. The management thinking previous to this 

228 



that everything was in good order, and that the employees or workers were 
contented because of the fact that the scale paid in our particular plant was 
higher than our competitors, we were at a loss to account for the dissatisfaction. 
They decided to call a meeting of the representatives of the employees, and 
a number of petty grievances were advanced and which could have been adjusted 
had there been some means of doing so. The strike was finally adjusted after 
three days' discussion and all the employees returned to work. 

"Our Shop Grievance Committee was then inaugurated, which, though not 
a very pretentious affair, is suitable to our needs and works along the lines 
as follows : 

Rules and Regulations 

(1) Each department shall have an accredited representative elected by the 
employees of his department. 

(2) Five representatives shall be elected as an executive committee by the 
representativs. 

(3) The representatives shall meet every Friday during or after working 
hours at a place they may select. 

(4) There shall be two representatives of the management who shall meet 
the executive committee in an office room set aside by the management for the 
purpose of discussing and adjusting complaints or grievances. 

Rules for Submitting Grievances 

(1) All complaints must be in writing and dated. Same must be submitted 
to department representative in which plaintiff is working at the close of the day. 

(2) The representative after receiving the complaint should try and adjust 
it with the foreman of his department. Should he fail to do so he is then to 
submit same at the next meeting of representatives. 

(3) The department representatives are to consider each complaint and 
pass upon it, and endeavor to adjust same. Should they fail, the complaint is 
then to be placed in the hands of the executive committee for adjustment at 
their meeting with the representatives of the management on the following 
Monday mornisg. 

(4) Should the executive committee and the management representatives 
fail to agree, the matter will then be referrd to the factory manager who will 
discuss same with a representative selected by the executive committee. 

(5) Should no satisfactory agreement be reached between the factory 
manager and the representative from the executive committee, the complaint 
is then to be put before an arbitration committee whose finding shall be binding 
and final upon both sides. 

(6) The abitration committee shall consist of five men, two selected by the 
management, two selected by the executive committee and the fifth to be selected 
and agreed upon by the other four members of the arbitration committee. 

"The above procedure has been very successful in our plant and to date 
every complaint has been satisfactorily adjusted. The scope of this committee 
is very wide and while at times the men advance a grievance which, after being 
thoroughly threshed out, is found to be caused by an individual who is doing 
it for his personal gain, the result has been very gratifying." 

FROM A LARGE LUMBER COMPANY. 

"We have a number of plants in the South where there are no unions and 
where we employ many colored men. This labor is constantly shifting- and it 
would be difficult to get any satisfactory results from such a plan. At one plant 

229 



we have made a start in this direction, however. The matter is entirely in 
the hands of the employees and they hold a fifteen minute meeting during the 
noon hour once a week. One of the employees is the speaker and he gives a 
talk on any subject that he may choose, often bearing upon the work in the 
shop. Whenever we have any announcement to make we take this opportunity 
for doing so and we find that it has led up to our explaining to the employees 
the reasons for certain changes or radical moves which are made by the 
management and this has resulted in more co-operation and less criticism than 
in the past when the men were held in ignorance and I believe this is destined 
to become a considerable advantage and after labor conditions become settled 
and normal we expect to introduce it in other plants." 

A LARGE MOTOR MANUFACTURING COMPANY. 

"Shop committees have been tried out by us with more or less success*. 
The trouble we have found is a lack of interest that the men themselves take 
in the committee work. 

"At the start of this plan, the men appeared to take hold of it with a 
hearty good will and take lots of interest but gradually it dropped away and 
we have been unable to keep up interest, so that for the present in our assembly 
plants we are not doing anything in regard to shop committees. The idea, we 
think, is fine if there would be some way that we could keep the interest of 
the men on the committees, which we have been unable to do so far. 

"It seems impossible to keep the men interested in these committees, as it 
does not seem to be of any benefit to them, or at least it is hard to show them 
where they are benefitted by this, and the work of the committee gradually 
drops away until they are of no use to themselves or to the factory." 



Personal Opinions, Favorable 



BOSS ELECTRICAL SUPPLY CO., Providence. 

"I personally think that the committee plan, so far as it has been developed, 
is the best means for the elimination of strikes and other troubles, and should 
be adopted and used by all organizations until something better is invented 
to replace same." 

COVERT GEAR COMPANY, INC., Lockport, N. Y. 

"I have made a careful study of it in the past and I realize that sooner 
or later we must all face it, and if it is taken up freely I know it will work 
out to the advantage of all concerned. 

"The shop committee plan is not fully established here yet, but we are 
on the road to its completion. 

"My personal view of it is that it will be a fine thing when every factory 
has it, and in the factories where I have come in contact with it, I can say 
that I found it entirely satisfactory and that it has no doubt saved a great 
deal of lost time in bringing the men in closer touch with the management, 
and in averting strikes that otherwise would have taken place. 

"It has also cut down the absentee list and cut down the percentage of 
lost time caused by employees being late." — C. H. Skinner, Employment Mgr. 

230 



WM. E. DUNHAM, Efficiency Engineer, Pittsburgh, Pa. 

"I have given the matter considerable thought in the last few years and 
heartily approve of it if properly handled. I am inclined to believe that the 
committee composed of both the management and the employees is not the 
ideal form, since the employees invariably feel that they are being spied upon 
and coerced through the management's representative. 

"It would seem to me that the better scheme would be to have each depart- 
ment or class of workers appoint a representative committee to confer with 
the management, the latter to be represented in whatever form the manage- 
ment deems it advisable. I think the jurisdictions of these committees should 
be to make recommendations; the final decision being reached in conference 
with the management. 

"One feature of the War Labor Board's accepted practice in connection 
with these shop committees is to have the committees appointed at a meeting 
of the employees called at some public place outside the plant. This, I feel, 
is liable to develop a spirit of antagonism between the employer and employee. 
The relation between capital and labor must certainly be coming to a strained 
point when employees cannot hold a meeting of this kind on the premises of 
the employer, and appoint their committees with perfect confidence that they 
are doing so with the co-operation and consent of the employer. I believe the 
whole principle behind the shop committee idea is to get a greater degree of 
co-operation, and think this principle should be kept in mind at all times in 
working out the details of shop committees." 

EASTERN MANUFACTURING COMPANY, Bangor, Maine. 

"We believe that eventually either a committee plan of shop management 
or some other co-operative plan based on the same general principles is bound 
to come and that when properly established it will be an excellent plan of 
management. We feel, however, that, at least in our own shop, conditions are 
not yet ripe for such a movement. 

"We also feel very strongly that it is a great mistake to jump into the 
shop committee plan unless the employees and the management are both fairly 
well educated along these lines so that the plan will not fail. A failure on 
the part of either the management or the employees will, we believe, lead to 
industrial unrest which would probably be more serious than would have been 
the case had such a scheme not been tried in the first place. 

"We believe that we are gradually educating both our employees and our 
executives and foremen to the point where eventually the shop committee plan 
will be practicable in our own plant, but do not expect any such thing in the 
near future and would regret exceedingly any action on the part of the Govern- 
ment which would force us into such a form of co-operative management before 
we are really ready for it. 

"At the present time we are experimenting with a system of group meet- 
ings. These group meetings have only been carried on for a few weeks but 
we are in hopes that they may prove a step toward the ideal of co-operative 
management." 

NOVELTY CANDY COMPANY, Chicago, 111. 

"I am of the opinion that the establishment of shop committees is a valuable 
addition to any organization, especially when working with skilled or organized 
labor." — Benjamin Schneewind, President. 

231 



OHIO LOCOMOTIVE CRANE CO., Bucyrus, Ohio. 

"I believe that if a good shop committee was selected, irrespective of 
whether the employees of same belonged to a union or not, that it would prove 
beneficial to both the employer and employee. 

"We employ both union and non-union employees. We show no partiality 
nor discrimination against either kind of employees. A week ago last Satur- 
day, the writer called into the office one of the leaders of the machinists' union,, 
and a non-union employee, and told them that we thought it would be beneficial 
to all mutual interests to establish a shop committee, relating briefly what good 
could be accomplished by such a committee. I told them that we proposed 
holding an election out in the shop, allowing each and every employee to vote 
for two men to represent them on a shop committee. The management would 
then select two other men to represent the company and these four men so 
selected could appoint the fifth man, or arbitrator. About one-fourth of our 
men are union men and the rest of them non-union men. I told them that 
in case the men elected two non-union men I would appoint two union men to 
represent the company, and vice versa, should the men elect two union men, I, 
on behalf of the company, would appoint two non-union men, so that the com- 
mittee would be equally divided in that respect, and so that neither side could 
find any fault with such an arrangement. 

"Our men seemed to be very well pleased with such an arrangement, and 
which arrangement we expect to put into operation some day this week. 

"The writer is also indirectly connected with another large concern here 
(The Carroll Foundry & Machine Co.) where a shop committee was appointed 
last week along the lines above indicated." — C. F. Michael. 

THE ROBERT MITCHELL COMPANY, Limited, Montreal, Quebec. 

"The Shop Committee Plan possesses a great deal of interest for us, and 
during the past year we have been studying instances of its application with 
a view to adopting it in our factory. Up to the present time, however, we have 
not put this plan into force. 

"We are thoroughly in sympathy with the idea that the employees of an 
industrial concern should have some recognized means of expressing their 
opinions on subjects affecting both themselves and their employers. 

"We have recently assisted our employees in forming a Mutual Benefit Asso- 
ciation, which is working very satisfactorily; and we are at present endeavoring 
to form a Co-operative Buying Society for the purchase of staple foodstuffs 
at wholesale, for the employees. 

"Although neither of the above associations is formed with a view to 
performing the functions of shop committees, still, we think, that the experience 
gained by our employees in managing these associations, will, in the course of 
time, make it possible for us effectively to work in a Shop Committee Plan." 

WASHBURN CROSBY CO., Minneapolis, Minn. 

"The matter of a shop committee, or employees' council, has been seriously 
considered the past few months, and we believe that something of this order 
will be adopted in the near future. The writer is very strongly in favor of 
such a plan and believes that concerns who employ a large number of men will 
find it advisable to have something on the co-operative plan in the future." — 
W. H. Bovey. 

232 



WALWORTH MANUFACTURING COMPANY, Boston, Mass. 

"We are very much interested in shop committees or any other plan to 
bring about closer relations between the management of this company and 
our operatives. 

"This matter has received our careful attention for a long time, but, due 
to the fact that we are operating an open shop and have a great many different 
trades represented, we have been unable to satisfy ourselves as to the best way 
to form a shop committee or shop committees. 

"We are now working on the publication of a shop paper, and that the 
men may have an interest in publishing it, we have appointed representatives 
of the men from eight or ten of our different shops to consult with us in regard 
to it. This is the nearest that we have come to the formation of any committee 
of our workmen, and, as you can readily see is quite a different proposition 
from our understanding of shop committees as constituted in a number of 
manufacturing plants." 

FROM THE EXPLOYMENT MANAGER OF A GUMMED AND COATED 
PAPER MANUFACTURING COMPANY. 

"I entirely believe in the principle of collective bargaining between employer 
and employee, having been a member of one of the large international unions 
for eighteen years. I do not, however, believe that it is advisable, either in the 
interests of the manufacturer or the employee, to urge employees to become 
members of a trade or labor union. It is my opinion that better relations may 
be had in any plant or in any industry between management and the workers 
where intelligently organized shop committees exist. In fact, I know of no 
other method whereby employers may be reasonably sure of uninterrupted 
production except by this method, and unless men are employed in small groups, 
I know of no other way that they can secure fair adjustments of grievances 
or questions that arise in the course of employment." 

FROM A LARGE MANUFACTURING COMPANY. 

"We recognized the fact that we must have a shop committee of some sort. 
We have always had a foremen's club meeting every two weeks and in a way 
shaping the general policies of our shop management, but we have not as yet 
made any move which will create a representative body in which the man in 
the shop has a vote. We are on the way to this, however, and while we are 
moving slowly, we are making sure of our ground as we step along. 

"We have in view the calling of a weekly meeting of all new employees. 
At this meeting we will tell those employees just what sort of a company they 
are working for, how important our work is in the winning of the war and 
sell them on the idea of a permanent job. We have tried this out, but we have 
not tried it out long enough to be able to give you any real information on 
what has happened, although in our own minds we are well satisfied with the 
progress." 

FROM A CHAIR MANUFACTURER. 

"Theoretically we believe in the shop committees, but inasmuch as our 
business is so small and we are in such close touch with the men and women 
in our employ we doubt whether there is as much need of it as would be the 
case in larger units. 

233 



"We presume that some day we shall be ready to go forward with this 
sort of thing, but just at present somehow we do not seem to feel the courage 
of our fairly well established conviction." 

A LARGE ENVELOPE COMPANY. 

"A personal acquaintanceship with our employees obviates the necessity 
for collective agreement through any system of shop committees. We can 
readily appreciate, however, that a system based on shop committees might 
prove very valuable in industrial establishments where labor is employed on 
such a large scale that a 'personal touch' becomes an impossibility." 



Unfavorable Opinions From Firms That Have No 

Committees 



LINK BELT CO., Philadelphia, Pa. 

"The policy of our company has always been to encourage close personal 
contact between the employees and the management, so that if any employee 
has any grievance he can at any time feel at liberty to present it personally 
to his superintendent, or to the plant manager. We believe this establishes a 
better working relation than where the employee has to reach the management 
through a committee, and our experience at our several plants has confirmed 
us in this belief. 

"Collective bargaining, of which we hear so much nowadays, has been given 
as one of the prime reasons for the existence of shop committees. This form 
of bargaining is all right with a large number of employees rendering sub- 
stantially equivalent service, such as locomotive engineers, street railway motor- 
men, conductors, etc., but in an industry like ours there are very few employees 
who render equivalent service and our whole scheme of compensation is based 
upon paying each employee in accordance with the service rendered, so that 
no necessity exists for collective bargaining." — Staunton B. Peck, Acting 
President. 

A. T. SIMONDS MANUFACTURING COMPANY, Fitchburg, Mass. 

"In regard to shop committees, I am very doubtful as to whether they 
will survive ordinary times, although they may be expedient during the present 
etxraordinary situation. I am positively against any system which makes it 
difficult or impossible to discharge an employee whether a member of a union 
or not, or to regulate the production of the more skilled men down to the 
lowest of the least skilled." — A. T. Simonds, President. 

FROM A LARGE RUBBER GOODS MANUFACTURING COMPANY. 

"We are not convinced that we could derive very much benefit from such 
a plan. In the first place, I need not remind you of the far-reaching effect 
were we to recognize this suggestion and comply with it entirely. My personal 
opinion is that I consider it a master stroke and without further explanation I 
think you see the intent." 

234 



FROM A LARGE AUTOMOBILE TIRE COMPANY. 

"We can do more for our employees if we are not hampered with 'shop 
committees' and so far have always been able to do so." 

FROM THE VICE-PRESIDENT OF A LARGE MOTOR CAR COMPANY. 

"I have not seen enough of this movement to form a decided opinion, 
but from observation in two or three shops where it was carried out, I do not 
think it is in the direction of the greatest efficiency. 

"However, I have so little knowledge of the matter that I am not in a 
position to express an opinion. I view the situation largely in this light : 

"Suppose General Pershing decided to make a move on the Western 
Front, and should call a meeting of the representatives of the soldiers in order to 
find out whether they wanted to do it or not. It seems to me it would be 
exceedingly difficult to weld together the variety of ideas, as to what should 
be done, so that much effort would be spent in this direction of more or less 
non-essential things." 

FROM A BAG MANUFACTURING COMPANY. 

"The work in our various factories has always been carried on largely by 
female help, they comprising about 80 per cent, of our force, and would, in 
general, be called semi-skilled. We have not considered that any great amount 
of benefit could be derived from committees composed of these employees. We 
do not find that we can procure employees from other lines of industry who 
bring with them any experience or helpful suggestions. Our work is such that 
it requires our teaching each new employee from the ground up." 

FROM A MANUFACTURER OF COTTON FABRICS. 

"I have not convinced myself that with the class of labor we employ (con- 
sisting of twenty odd different races and creeds, largely from central Europe — 
many of them not speaking English) the introduction of such shop committees 
are a good thing for our particular industry, or that they would be any better 
in establishing good relationships than the method now pursued through our 
Labor and Service Department, under the general charge of our factory man- 
ager. Being a quarter Irish, I am afraid I rather favor direct action, and agree 
with a certain celebrated Washington authority that Committees, like boards, 
are usually long, narrow and wooden. 

"No one would welcome more heartily than I a practical scheme of indus- 
trial democratization, for it would certainly relieve the management of many 
of their present duties and trouble, but to be successful, it would mean that the 
workers would have to pick their leaders more wisely than they are choosing 
their representatives today — and that would mean very considerable education 
of the working man as a preliminary." 



FROM A LARGE CASH REGISTER MANUFACTURING COMPANY. 

"We do not recognize any labor organization, ours being an 'open shop.' 
Our past experience has taught us that the ordinary shop committee does not 
necessarily promote good relations between the men and management, and we 
think we have found a better way to maintain harmony and co-operation 
between the men and the company." 

235 



FROM A LARGE AUTOMOBILE FACTORY. 

"There is no committee plan in operation in our factories. 

"From what we have been able to learn we feel there is no necessity for 
adopting the shop committee and in this particular locality believe it would be 
unadvisable to do so." 

FROM A LARGE MANUFACTURER OF VALVES AND PIPE FITTINGS. 

"At the works in sixty-three years we have had one strike, 

in 1893, due to the extremely depressed conditions at that time, and in 1915, at 
the Bridgeport plant we had a peaceful walk out, brought about by the general 
unrest there arising from a deficiency of labor and high wages offered by the 
munition plants. The men came back to us in three or four weeks without any 
change in wages or hours. 

"With this experience, we are willing to let well enough alone and would 
rather not experiment with a shop committee of employees." 

FROM THE CHIEF ENGINEER OF A MACHINE MANUFACTURING 
COMPANY. 

"I believe it is a good war measure and should be given a fair tryout. 

"I don't believe it will do very much good nor will it do much harm, but 
it will give the workers a chance to express their ideas as to how a factory 
should be managed to conform with their ideas. It will also satisfy a portion 
of the force which is at heart Bolsheviki. 

"It may also help in keeping out outside prefessional agitation and any- 
thing that will counteract that kind of a force is worth trying. 

"The committee will not do much harm because after the first outburst 
of enthusiasm has worked off its steam, the committee will be indifferent, as all 
committees are, and like putty in the hands of a clever leader. Then it is up 
to you to lead the leader — in other words, see that he realizes what the business 
is for and what is best for it." 

FROM THE PRESIDENT OF A MANUFACTURING CONCERN. 

"As regards committee management, we have recently been trying it out to 
a very limited extent. We have a Production Committee which includes the 
head of our Production Department and his assistant, our factory superin- 
tendent, and the head of the inspection and shipping department. 

"Am sorry to say that at present I could not give my unqualified endorse- 
ment to the committee plan, as having anything to do with wage schedules." 

"As to working conditions, as far as they relate to sanitary and hygienic 
conditions, etc., I believe it would be a success, and we hope to establish such 
a committee here. 

"Also we have one in mind to look after such social activities as we may 
have, for which our facilities are quite limited anyway. 

"Beyond this, while I thoroughly agree with the committee idea in theory, 
it doesn't seem wise in this plant under present industrial conditions. 

"When we find our employes as loyal to the Government and our own 
interests as we think they should be, and as we are trying to be to them, and 
this loyalty will be evidenced by regularity of attendance and increase instead 

236 



of decrease of production, and they are not ready at the drop of the hat to 
leave for another plant where they can get (possible) increase in pay, I should 
feel we could trust them to assist us in determining wage scales, etc. 

"I don't like to feel as I do about the present attitude of our employees, 
but their own action forces me to it. If their attitude could be changed by 
introducing a committee plan of management, I would be the first one to adopt 
it, but I feel now I should hardly dare undertake so radical a change." 



237 



Appendix VI 



LOST TIME IN MUNITIONS FACTORIES 
"A New Way of Dealing with Offenders." 

(Reprinted from the London Chronicle. Pamphlet in Department of Labor Library, 

Washington.) 



Seven workmen are seated round a table in a dark room. They are washed 
and brushed, after their day's work. The electric lamp over the table, its bright 
wire hidden by a long shade like a fool's-cap, shines dimly upon papers and books 
and inkpots. The rest of the long room is in shadow. These seven workmen 
constitute the Coventry Local Labor Advisory Board. Brought into adminis- 
trative existence for one purpose, they have achieved another, which is like a 
revolution. It is my hope that when peace returns to the earth these seven 
workmen may be acclaimed as the initiators of a great social reform. 

"Call Mr. Dash," says the chairman, examining his papers. The chairman is 
a short, plump, high-shouldered man, with a very menacing directness of eye 
and a husky voice, extraordinarily swift in its utterance. 

The other workmen read a report from the employers of Mr. Dash. One 
shakes his head over it. Another, sharpening his pencil, remarks that it's a bad 
case. The secretary says, "There's worse to come." A door opens. We hear 
a shuffling sound from the end of the room, and out of the shadows a young 
man makes his appearance, cap in hand, the collar of his overcoat half-turned 
up. This diffident young man approaches the table, like a ghost or like the 
victim of a mesmerist. 

Time-Loser's Excuse 

"Good evening, Mr. Dash," says the chairman cheerfully. "Take a seat. 
We won't keep you many minutes." And as soon as Mr. Dash has taken a seat 
at the end of the table, the chairman, holding the papers in his hands, and fixing 
his accusing eyes upon the offender, proceeds as follows : "Mr. Dash, you are 
reported to us by your employers for losing five hours last week, four hours 
the week before, and five and a half hours the week before that. We are 
going to ask you why you lost this time. 

"But, before putting that question, I wish to explain to you that we are all 
workmen the same as yourself, that we don't represent your employers, that 
we are not here in the interests of your employers, and that our only business 
is to see that the chaps at the front get enough stuff to beat the Germans. 
You'll understand, please, that in speaking to us you can speak freely. We've 
no wish to send you before the Tribunal. We want to keep all the skilled 
workmen we've got. Our one object is to see that the factories of Coventry 
turn out all the stuff they can, in order to win the war. Now, Mr. Dash, will 
you be so good as to explain to us how you have managed to lose this time?" 

Mr. Dash explains. He is a gentlemanly, delicate young man, and begins : 
"Mr. Chairman and Gentlemen." His voice is low and sorrowful. His excuse 
is a domestic excuse, and one that touches the heart. He advances it modestly 
and pathetically. This young man has to get breakfast for his wife, and to 
wash and dress his children, before he goes to work. Surely he has a valid 
excuse for those lost hours. 

238 



Putting It Straight 

But the seven workmen, after listening quietly, and after the chairman has 
expressed a brief, businesslike sympathy, suddenly began to fire off questions, 
one after another, like bullets from a rifle. 

"You can get out of bed half an hour earlier, can't you?" says the chairman. 

"Yes." 

"Think of the girls who live outside the town and get up at 4 o'clock or 
5 o'clock in order to be at the factory in proper time." 

Mr. Dash nods his head. 

"If you were in the trenches you'd get up when you were told, wouldn't you?" 

"Yes." 

"You'd jolly well have to." 

Mr. Dash acquiesces. 

"There'd be no loitering for you out there, would there? No; you bet 
your life ! And, Mr. Dash, let me tell you this : Many a man in those trenches, 
facing death every minute of his life, has a delicate wife and young children 
in England. Aye, and he's worrying about them. They're in his thoughts night 
and day. Why are not you out there? Just because you've got a trade in 
your fingers. And if you don't do your best at the trade, Mr. Dash, what will 
your conscience say to you? Put it to your conscience. 

"Come, you're a man of honor. Give us your word, pledge your word to 
us, Mr. Dash, that you'll lose no more time. Remember this : those men out 
in the trenches are fighting for your wife and children; they are not fighting 
for your employers ; they aren't fighting for the capitalist ; they're fighting for 
you, for your wife, and for your little ones. Aye, that's a fact. Come, you'll 
give us your word. You'll get up half an hour earlier, won't you? It isn't 
much to ask of you, is it? It doesn't compare with what the chaps out there 
are doing for you, does it? Well, your hand on it, Mr. Dash." 

Mr. Dash shakes hands, gives his solemn word he'll lose no more time 
(there is a real ring in his voice) and goes out of the room with his head 
down, and moisture in his eyes. 

Dramatic Cross-Examination 

The next case is that of a youth, who comes into the room with a certain 
betrayal of nervousness, but is soon perfectly at his ease, looking around at 
the seven workmen with an expression of rather contemptuous amusement. 

This young man is reported for losing time and also for insolence to his 
foreman. He is not in the least ashamed. He faces his judges with a cool 
detachment. He smiles as the charge is read over to him, motionless on his 
chair at the end of the table. His excuse is that he is not satisfied with his 
conditions. He is asked whether he is a member of a Union? Yes. Has he 
reported his complaints to his Union? No. 

"Why not? It was your duty to report your complaints. The secretary 
of your society is here at this table. What excuse have you got?" The boy 
shifts in his seat, his eyelids blinking, his tongue moistening his lips. The 
secretary suddenly asks, "How long have you been with Messrs. So-and-So?" 
"Four weeks." "And you left your last employers on such a date?" "Yes." 
"Then you were walking about for three weeks doing nothing at all?" "I was 
looking for a job." "Did you go to the Labor Exchange?" "No." "Why not?" 

Then comes with dramatic suddenness an appeal to the defendant's moral 
judgment, to his honor, to his conscience. He is astonished. His eyes go from 
one to another of his judges. They are wage-earning workmen, like himself; 

239 



and they are speaking of honor, speaking of conscience. More than this : They 
are speaking of his mates in the trenches, of mud up to the knees, of bitter 
cold, of drenching rain, of shells which never cease to fall, night and day. 
"Those shells were falling while you were walking about with your hands in 
your pockets." 

He is beaten. You see something like fear in his eyes. Then he jumps 
up. He can stand it no longer. "I'll give you my word," he says. "Your hand 
on that." He takes the hand offered to him. "Mind ! your word is your bond." 
"Yes." "You'll do your best, lad?" "Yes." "Well, good luck to you. We know 
you'll keep your word." 

Five Pounds a Week Grievance 

The next case is the worst of all. There is a deal of discussion among 
the Board. On the evidence before them this man ought to go before the 
Tribunal. He's a clever workman, but he comes when he likes, goes when he 
likes. His foreman can do nothing with him. His employers report that they 
consider him hopeless. The chairman looks up from his paper, shaking his 
head. "Well, we must see him." 

"Call Mr. Blank," says the secretary. 

He is invited to sit down, and, sitting down, he looks steadily at the chair- 
man, an angry gleam in his eyes. Again and again, while the chairman explains 
the office of the Board, he nods his head, and makes a curious forward move- 
ment with his right hand, as if to say: "I understand all this; don't waste 
your breath" ; but he utters no sound. And when the chairman has finished 
his formidable indictment, concluding with the words, "What have you to say 
for yourself, Mr. Blank?" the young man, moistening his lips, says hoarsely: 
"This : If a man was to say to you — now I'm speaking the truth, mind you — 
if a man was to say to you, 'Get on with this job and there'll be an extra five 
bob on it at the end of the week' ; and if when the end of the week comes, see, 
and you gets your money, instead of five pun sevingteen and six it's only five 
pun three — well, what 'ud your feelings be?" He sits back in his chair, breath- 
ing hard, his head going from side to side. "D' you think a man — a man — will 
put with that? Not likely!" 

Searching Questions 

You should have heard the seven workmen of Coventry ! Had he reported 
his unfulfilled promise of a foreman to his Union? No, he had not. "Why 
not, then? why not, Mr. Blank?" Then a casual aside: "By the way, are 
you still a member of your society?" "No." "Why not?" An awkward ques- 
tion.. "You've been earning good money, but you havn't paid your subscriptions." 

"Let me tell you this, Mr. Blank," says the chairman: "I'm a workman 
like yourself, and a skilled workman, and I've got a wife and six children, and 
never since this war started have I topped fifty shillings a week. Never topped 
it ? Why, I've never seen fifty shillings a week. Listen to me ; you, an un- 
married man, earning over five pounds a week, have been losing days at your 
work, week after week, while better men than you, men with wives and families, 
have been fighting and dying out in France." 

"Mr. Chairman," breaks in the representative of the Ministry of Munitions, 
"I object to wasting time over this man. It's a clear case for the Tribunal." 

"Wait a moment," says the chairman. Then turning to Mr. Blank, he says : 
"The only reason you aren't out in the trenches is this — you've got a trade in 
your fingers. You've got a trade. It earns you good money. And you can 

240 



sleep in a comfortable bed, get what food you want, work in the dry, and 
enjoy yourself how you will in your leisure. And, Mr. Blank, with all these 
advantages and benefits, you're holding back the stuff from your own brothers 
out in the trenches !" 

Another breaks in. "Listen, Mr. Blank ! Last week, as we sat here, with a 
case before us very like yours, a telegram was brought to me. That telegram 
contained the news of my brother's death in France — shot through the brain. 
He left a wife and five little kiddies. They'll never see him again. They'll 
never know prosperity again. His wife is a widow ; his children will call for 
their daddy in vain; life as they've known it is finished for them; it'd done; 
and" — lowering his voice to near a whisper — "and you, Mr. Blank, you may 
be the cause of my brother's death." 

Coventry Leads the Way 

Well, this case ends like the rest. The workman surrenders. It ends, too, 
as five other cases ended that night, in something very near tears. 

Now, this Coventry scheme has been tried for some time. I was given 
bundles of reports from various employers concerning men who had once 
appeared before the board. In an overwhelming majority the reports ran, "No 
further time lost." I suppose I must have glanced at scores of these reports; 
certainly I handled three big bundles of them, and I saw nothing else except 
an excellent verdict. Therefore, what I saw of the workmen before the Board 
did not strike me as theatrical or sentimental. I knew that this scheme worked. 
I knew that the Board has solved one of the great difficulties in getting munitions. 
And what I saw that night confirmed in me the strong conviction that the way 
to rule workmen is through and by workmen — not foremen, not superintendents, 
not managers, not employers, but working workmen. 

(Reprinted from the Daily Chronicle by the kind permission of Mr. Harold 
Begbie and the Editor.) 



241 



Appendix VII 



PROVISIONS FOR WORKS COMMITTEES IN THE AWARDS 

OF THE NATIONAL WAR LABOR BOARD AND 

MEMORANDUM WITH REGARD TO 

PROCEDURE IN ELECTIONS 



Employees v. American Locomotive Company, Schenectady, N. Y ., Docket No. 
61; Mason Machine Works, Taunton, Mass., Docket No. in, October 9, 1918; 
St. Louis Car Company, St. Louis, Mo., Docket No. 4-A, October 11, 1918. 

For the purpose of securing the equitable application of Section I (con- 
cerning working hours and overtime) and adjusting all differences which may 
arise between the management and the workers in regard to its operation, a 
permanent committee of four persons is hereby created, two of whom shall 
be designated by the management of the plant and two by the workers, the 
decision of any three of whom shall be binding. In the event of failure of the 
committee to reach an agreement the case may be referred to the Examiner 
of the National' War Labor Board, whose decision shall be binding, except 
that either party may appeal to the National War Labor Board pending the 
ajudication of which appeal the decision of the examiner shall be in force 
and effect. 

Machinists and Electrical Workers and Other Employees vs. The Bethlehem 
Steel Company, Bethlehem, Pa., Docket No. 22, July 31, 1918. 

The right of employees to bargain collectively is recognized by the National 
War Labor Board; therefore the employees of the Bethlehem plant should be 
guaranteed this right. The workers of the Bethlehem plant should use the 
same method of electing committees as is provided in the award of the National 
War Labor Board for the workers of the General Electric Company at Pittsfield, 
Mass. 

Employees v. The General Electric Company, Pittsfield Works, Docket No. 19, 
July 31, 19 18. 

The election by the workers of their representative department committees 
to present grievances and to mediate with the company shall be held during 
the life of this award in some convenient public building in the neighborhood 
of the plant, to be selected by the examiner of this board assigned to supervise 
the execution of this award, or in the case of his absence, by some impartial 
person, to be selected by such examiner. Such examiner or his substitute shall 
preside over the first and all subsequent meetings during the life of this award, 
and have the power to make the proper regulations to secure absolute fairness. 

In the elections the examiner shall provide whenever practicable for the 
minority representation by limiting the right of each voter to a vote for less 
than the total number of the committee to be selected. Elections shall be held 
annually. 

242 



Employees v. Employers in Munition and Related Trades, Bridgeport Conn. 

Docket No. 132, August 26, 19 18. 

The right of employees to bargain collectively is recognized by the National 
War Labor Board; therefore, the employees in the plants shall be guaranteed 
this right. 

Employees v. Corn Products Refining Company, Docket No. 130, November 21, 

1918. 

Committees consisting of three employees from each department shall be 
elected by secret ballot in such manner and place and under such conditions 
as the employees may determine without influence or interference by the com- 
pany or any of its superintendents or foremen, which committees after their 
election shall represent and be responsible to the employees of such departments 
in the presentation and adjustment of any grievances as to hours, wages, or 
working conditions. 

Such grievances as may arise shall first be presented for adjustment to the 
head of the department involved by the departmental committee concerned. If 
within five days thereafter the dispute is not adjusted, the departmental com- 
mittee may refer the matter in dispute to a general plant committee to consist 
of five employees elected by the members of the departmental committees, to 
be taken up by the general plant committee with a like committee of the com- 
pany or other of the company's representatives for the purpose of bringing 
about a settlement. In the event that the general plant committee fails to bring 
about an agreement on disputed questions, the matter in dispute may be referred 
to the National War Labor Board or to such other agency as the company or 
its representatives and the general plant committee may agree upon. 

General Electric Company, Lynn, Mass., Docket No. 231, October 24, 1918. 

In the case of the employees v. the General Electric Company, Mass., the 
National War Labor Board orders: 

(a) There shall be forthwith shop committees in conformity with a plan 
approved by the Board. 

(b) That the secretary of the National War Labor Board shall appoint an 
examiner who shall supervise and conduct these elections. 

(c) That a general committee shall be created, consisting of three members 
to represent the workers and three to represent the employers. The members 
of the general committee representing the workers shall be selected by the 
members of the shop committee acting jointly, under supervision of the examiner. 

(d) That the employers shall forthwith select their represenattives to meet 
with the representatives of the workers on the shop committee and the general 
committee. 

Employees v. Jackson and Church Company, Wilcox Motor and Manufacturing 
Company, Stork Motor Works, Carde Stamping and Tool Company, Jack- 
son-Church-Wilcox Company, Nelson Brothers Company, National Engi- 
neering Company, Werner and Pfleiderer Company, Lufkin Rule Company, 
Wickes Brothers, and American Cash Register Company, all of Saginaw, 
Michigan, Docket No. 147, October 25, 1918. 
As the right of workers to bargain collectively through committees is 

recognized by the board, the companies shall recognize and deal with such 

committees after they have been constituted by the employees. 

The election of committees shall be held in the places where the largest 

total vote of the men can be secured consistent with fairness of count and full 

243 



and free expression of choice, either in the shop or some convenient public 
building, as the parties themselves shall agree upon. 

The committees above provided shall meet with the management to establish 
such classifications and minimum rates of pay as may seem to them necessary. 

Employees v. Manufacturers of Nezvs print Paper, Docket No. 35, July 20, 1918. 

It is recommended that a committee of five (5) representing the employers 
and a committee of five (5) representing the employees be formed by the 
respective groups, which joint committee shall make careful investigation and 
study in the industry and endeavor to submit a uniform classification of em- 
ployees, to establish proper wage differential among the various classes and 
the various grades in each class, and to formulate a schedule of working con- 
ditions that can be adopted by all the mills, with a view of establishing uniform 
classification, working conditions, and wage schedules throughout the industry. 
These committees should be appointed at once and endeavor to reach a con- 
clusion and report within six (6) months from July 1, 1918. 

Employees v. National Refining Company, Coffeyville, Kansas, Docket No. 97, 

August 28, 19 18. 

As the right of workers to bargain collectively through committees has 
been recognized by the Board, the company shall recognize and deal with such 
committees after they have been constituted by the employees. 

Employees v. Nezv York Central Iron Works Co., Inc., Hagerstown, Md., Docket 

No. 297, September 26, 1918. 

A committee of five shall be chosen by the workers by secret ballot at an 
election to be held and supervised by the committee of five workers signing 
this agreement and the general manager and the superintendent of the plant. 
If any individual worker is unable to settle a point of difference with the 
superintendent, the worker shall have the right to present such point of 
difference directly to the general manager or through the committee of five to 
be so elected. Should any worker on the committee cease to be employed at 
the plant, his place on the committee shall automatically become vacant and 
shall be filled in the manner prescribed for the election of the committee. 

Employees v. Smith and Wesson Co., Springfield, Mass., Docket No. 273, August 
21, 1918. 

(a) Election of Committees. — The election by the workers of their repre- 
sentative department committees to present grievances and mediate with the 
company shall be held, during the life of this award, in some convenient public 
building in the neighborhood of the plant, to be selected by the examiner of 
this board assigned to supervise the execution of this award, or, in case of his 
absence, by some impartial person, a resident of Springfield, Mass., to be 
selected by such examiner. Such examiner, or his substitute, shall preside over 
the first and all subsequent elections during the life of this award, and have 
the power to make the proper regulations to secure absolute fairness. 

In the elections the examiner shall provide, wherever practicable, for the 
minority representation by limiting the right of each voter to a vote for less 
than the total number of the committee to be selected. Elections shall be 
held annually. 

(b) Duties Of Department Committees. — The duties of the department com- 
mittees shall be confined to the adjustment of disputes which the shop foremen 
and the division superintendents and the employees have been unable to adjust. 

244 



The department committees shall meet annually and shall select from 
among their number three (3) employees who shall be known as the Committee 
on Appeals. This committee shall meet with the management for the purpose 
of adjusting disputes which the department committees have failed to adjust. 

Employees v. Southern California Iron and Steel Company, Los Angeles, Cal., 

Docket No. 94, October 25, 1918. 

As the right of the workers to bargain collectively through committees has 
been recognized by the Board, the company shall recognize and deal with such 
committees after they have been constituted by the employees. 

All questions in dispute shall be taken up for adjustment with the manage- 
ment and the committees herein provided for. 

Employees v. Standard Wheel Company, Terre Haute, Ind., Docket No. 176, 

October 25, 1918. 

As the right of workers to bargain collectively through committees has 
been recognized by the Board, the company shall recognize and deal with such 
committees, at least one member of which shall be a woman, after they have 
been constituted by the employees under the supervision of an examiner of the 
National War Labor Board and by a method of election prescribed by the Board. 

Employees v. Virginia Bridge and Iron Company, Roanoke, Va., Docket No. 47, 

O.ctober 24, 1918. 

In the case of Employees versus the Virginia Bridge and Iron Co., Roanoke, 
Virginia, the board finds that the case is one in which such controversies as 
exist, if any, should be settled through committees representing the men and 
the company in accord with the principles of the Board relating to collective 
bargaining. 

The Board, therefore, directs that such committees should be forthwith 
selected for this purpose. 

In the event that the committees may fail to agree with the company in 
matters in controversy, such matters may then be brought to this Board for 
adjustment, consideration and decision. 

NATIONAL WAR LABOR BOARD, Washington. 

Procedure 

ELECTIONS OF SHOP COMMITTEES 

In cases where elections are required to be held for the purpose of selecting 
shop committees, the following shall be the procedure: 

1. Number of Committeemen 
Shop committees shall be selected to meet with an equal or a lesser number 
of representatives to be selected by the employer. Each department or section 
of the shop shall be entitled to one committeeman for each one hundred em- 
ployees employed in the department or section. If in any department or section 
there shall be employees in excess of any even hundred, than an additional 
committeeman may be elected provided the additional employees beyond the 
even hundred shall be fifty or more; if less than fifty, no additional representa- 
tion shall be allowed. As an example: In a department or section employing 
330 men, three committeemen will be elected; in a department employing 375 
men, four committeemen will be elected. 

245 



2. Nominations 
Due notice having been given of an election, 10 days shall be allowed .during 
which nominations may be made for candidates. In order that a candidate's 
name may appear on the ballot, such person must be nominated either at a 
meeting of the employees or any part of them duly called for that purpose, or 
by petition signed by not less than 10 per cent of those qualified to vote for 
any candidate so nominated. 

a. By Convention. — Meetings for nomination of candidates may be held at 
any places named in the calls for the same. The nominations and the attendance 
of at least 10 per cent of the persons entitled to vote for nominees at any such 
meeting must be certified to by the chairman and secretary of the meeting. 

b. By Petition. — All nominating petitions must clearly name the candidate 
or candidates and have the signature of not less than 10 per cent of the bona 
fide employees qualified to vote for such candidate. 

c. Filing Nominations. — Nominations made either by meeting or by petition 
must be sent to the examiner of the National War Labor Board not later than 
10 days after the notice of election is given, and the election shall be held on 
the fifth day next succeeding unless such day should be Saturday or Sunday 
or a holiday, in which event the election shall be held on the next successive 
work day. 

d. Publishing Lists of Nominees. — Lists of candidates selected by con- 
vention or petition and distinctively designated, may be posted by their respective 
supporters on a bulletin board to be provided by the employer, convenient to 
the voting booths, to assist voters in marking their ballots. 

3. Elections 

a. Place. — The election shall be held in the place where the largest total 
vote of the men can be secured, consistent with fairness of count and full and 
free expression of choice, either in the shop or in some convenient public 
building, as the chief examiner shall decide after conference, if need be, with 
the Secretary of the National War Labor Board. 

b. Election Officers. — The election shall be conducted under the supervision 
of an examiner of the National War Labor Board, who shall select as assistants 
two or more employees of the department or section for which the election is 
held. These persons shall constitute the Election Board, which will conduct 
the election, count the votes, and certify as to the correctness of the count. 

An employee of the company to be nominated by the employer, who shall 
preferably be the timekeeper or someone connected with the proper department 
or section, who is qualified to certify to and identify the voters as bona fide 
employees, shall assist the election board in its duties. 

c. Freedom from Undue Influence. — All elections shall be held in accordance 
with the Australian or secret ballot. The names of all the nominees shall be 
printed in alphabetical order on the ballot, which shall clearly state the number 
to be voted for. This ballot shall be in the form that it may be folded so as 
to conceal the nature of the vote. Each employee presenting himself shall be 
certified to as qualified to vote and handed a ballot by the tellers. Upon indi- 
cating upon the ballot by marking a cross opposite the names of the candidates 
for whom the employee wishes to vote, he shall himself place it in the ballot 
box. A booth or booths shall be provided where the employee may indicate 
his choice free from observation. 

246 



Foremen and other officials of the company shall absent themselves from 
the election to remove ground for a claim of undue influence. 

d. Declaration of Election. — The candidates receiving the greatest number 
of votes shall be v declared elected by the election board. In the event of a tie 
vote, the examiner of the National War Labor Board shall call for a new 
election within five days. 

4. Change of Procedure by Agreement 

After the initial election under the supervision of the examiner of the 
National War Labor Board, subsequent elections and any general rules or regu- 
lations pertaining to the selection of Shop Committees may be carried out 
through agreement between the employer and the committee so elected. Proper 
provision should be made for reports of the Shop Committees from time to 
time to their respective constituencies. 

Approved by the Joint Chairmen, October 4, 1918. 

This election plan is so worded as to provide for both a General Works 
Committee, representing the employers of the entire establishment, such as 
might meet annually or on special occasions, and also, for department com- 
mittees (which is the sense in which the term "Shop Committee" is ordinarily 
used). These latter committees are the agencies by which the employees of 
the several departments, or sections of the works, take up in the first instance 
the various problems requiring adjustment with the management. 

The General Works Committee is composed of the several shop committees 
representing the departments and sections of the plant. Thus, a single election 
in a department provides both a shop committee as such, and a portion of the 
Works Committee, which will be formed by the coming together of all the 
various shop committees. 

Long experience has shown that committees of three are usually more 
effective than either larger or smaller ones. In order to insure workable com- 
mittees of not less than three or more than five, examiners can either sub- 
divide a plant into sections of not less than two hundred and fifty nor more 
than five hundred and fifty employees, thus securing committees of suitable 
size at once, or under some circumstances they may find it better to permit a 
somewhat larger section of the plant to elect committeemen and then to see 
that the committee resulting reduces itself to manageable proportions by subse- 
quent election among its own number. 

Before giving notice of any election under an award of the Board, the 
administrative examiner in charge shall submit in writing to the undersigned 
an election schedule, on which the place of the election shall be stated, as well 
as the several subdivisions of the plant by which shop committees are to be 
chosen. 

The number of employees in each department or section of the plant shall 
be shown, the representation allowed upon the committee, and the time proposed 
for the election. 

The place of the election and other details will be approved by the chief 
administrative examiner, as required in paragraph 3, section A, of the official 
election plan. — (Memorandum by Administrator of Awards.) 

247 



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227, Oct., 1917, pp. 193-206. 

Works committees. Times Engineering Supplement, June, 1918. 

(Report of the British committees of managers and workmen.) 

Works committees as part of the industrial council plan of Great Britain. 
U. S. Bureau of Labor Statistics, Monthly Review, June, 1918, pp. 163-165. 
(Reprints the Supplementary report on works committee in full.) 

Works committees in Germany. British Labor Gazette, May, 1918. 



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